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ADDRESSES 



i^' 



OF 



THE PHILADELPHIA SOCIETY 

FOR 

THE PROMOTION 

OF 

NATIONAL INDUSTRY. 



'•To be independent for the comforts of life, we must fabricate them 
ourselves. We must now place the manufacturer by the side of the agri- 
culturist." Jefftrson. 

" Manufactures are nmo as necessary to our independence as to our comr 
fort.''' Idem. 

" While the necessities of nations exclusively devoted to agriculture for 
the fabrics of manufacturing states, are constant and regular, the wants of 
the latter for the products of the former are liable to very considerable fluc- 
tuations and interruptions." •5. Hamilton. 

" Not only the loealth but the independence and security of a country, ap- 
pear to be materially connected with the prosperity of manufactures Every 
nation, with a view to these great objects, ought to endeavour to possess 
within Itself all the essentials of national supply. These comprise the means 
of subsistence, habitation, clotiiing, and defence." Idem. 

" The undertakers of new manufactures have to contend not only with 
the natural disadvantages of a new undertaking; but with the gratuities and 
remunerations which other governments bestow. To be enabled to contend 
with success, it is evident that the interference and aid of their government 
are indispensable.^^ Idem. 

" If Europe will not take from us the products of our soil, on terms con- 
sistent with our interest, the natural remedy is to contract as fast as possible 
our wants of her. ^"^ Idem. 



FIFTH EDITION^. 



yT c-; '"• 



PHILADELPHIA! 



*i'^^"''£^ 



PUBLISHED BY JAMES MAXWELL. 



Extract from the Jimerican Farmer. 

" Had we anticipated the masterly and patriotic addres- 
ses of the Philadelphia Society for the promotion of Na- 
tional Industry, before the publication of our first number, 
we should gladly have remained silent* We should have 
blushed to speak on subjects to be simultaneously discussed 
in a manner far transcending our ability. And now, could 
we know that all the readers of the American Farmer 
Would peruse the numbers of those excellent addresses, no 
more of our comparatively trifling essays would appear. 
But our belief to the contrary, and the expectation which 
may have been justly excited, must be our apology for con- 
tinuing our numbers. We are happy to find in what we 
have seen of that grand production, some notions which 
we had conceived, fully confirmed, and we hope not a lit- 
tle praise may be rendered to its author, if some of the 
bright rays which have been shed on ourselves, should be 
occasionally, but faintly, reflected upon our readers." 

Extract of a letter from John Mams, Esq, ex president, to 
the Editors of the Manufacturers and Farmer^s JournaL 

** The gentlemen of Philadelphia have published a very 
important volume upon the subject, which I recommend to 
your careful perusal. '^ 

Extract of an Address from Benjamin Austin, Esq. 

"This subject has produced researches, which demon- 
strate the abundant resources of our country, and the prac- 
ticability of accomplishing those important objects, (the 
establishment of national manufactures) with the aid of go- 
vernment. Among the foremost, the Philadelphia Society 
for the promotion of National Industry, is entitled to our 
thanks for their perseverance in this national and laudable 
pursuit." 

Extract of a Letter from General Harrison to the publishers 
of the former editions. 

" I should be wanting in candour not to acknowledge, 
that I have been converted to my present principles in fa- 
vour of manufactures, by the luminous views upon the sub- 
ject which have been published by your society." 
Your, &c. 

W. H. Harrison. 



Fhiladelphia, March, 3, 1820. 
This work appears again before the community with 
ajundry corrections and improvements* 

^.The society having no object but the public good, and 
believing this work calculated to promote it, earnestly re- 
quest those into whose hands it may come, to extend its 
circulation as far as may be in their power. 

It was intended to introduce the essays signed Ji Mem^ 
ber of Congress and JYeckar in an appendix. But this idea 
was abandoned from a consideration that most part of the 
arguments of J^eckar were contained in the addresses— 
and moreover, the admirable sermon of the rev. Mr. Beech- 
er, which is hereto annexed, was judged very far superior 
to those essays, being much more argumentative and con- 
vincing. 



PREFACE. 



In presenting to our fellow-citizens these addresses, col- 
lected together, we cannot refrain from expressing our 
hi^h sense of the favourable reception they have experien- 
ced. The various defects of style and arrangement which 
pervade them, have been overlooked, in consideration of 
the magnitude of the subject they embrace. 

We feel persuaded that the cause we advocate yields to 
none in importance. It is a great error to suppose, as un- 
happily is too frequently done, that it is the cause of the ma- 
nufacturers alone. Nothing can be more foreign from the 
real fact. It is the cause of the nation. It is the mighty 
question, whether we shall be really or nominally inde- 
pendent — whether we shall persevere in a policy, which in 
four or five years has done more to prostrate our strength 
and resources than a fierce war of equal dui*ation could 
have done — a policy similar to that which has sunk and 
degraded Spain for centuries, notwithstanding her immense 
internal and colonial resources — a policy which has never 
failed, and never can fail, to debilitate and impoverish 
every country where it has prevailed or may prevail — a 
policy discarded by every wise nation in Europe — a policy 
m direct hostility with that of England, Russia, Austria^ 
France, Holland, and Denmark — a policy, in a word, that 
fosters and promotes the wealth, power, resources, indus- 
try, and manufactures of foreign nations, and sacrifices 
those of our own country. 

If there be any one truth in political economy more sa- 
cred and irrefragable than another, it is that the prosperity 
of nations bears an exact proportion to the encouragement 
of their domestic industry — and that their decay and de- 
crepitude commence and proceed pari passu with their 
neglect of it. The wonderful resources ot England, so far 
beyond her intrinsic advantages, and the prostrate state of 
Spain and Portugal, place these great truths on the most 
impregnable ground. 

We pursue a wayward and short-sighted policy, of which 
the world atfords few examples, and which evinces how lit- 



PREFACE. V 

tie we have profited by the experience of other nations — 
and how much we neglect the maxims of the wise states- 
men of Europe and ol our own country. 

With a capacity to raise cotton to supply the whole 
world, our treasures are lavished in Hindostan to purchase 
cotton of inferior quality, which is now manufactured in 
the United States, to the injury of our cotton planters. 
And with skill, talents, water-power, capital, and machi- 
nery to supply our utmost demand for cambrics and mus- 
lins, millions of money are in a similar manner lavished in 
Hindostan and England, to procure those articles; while 
tens of thousands of our own citizens, capable of furnish- 
ing them, are pining in indigence; their employers ruined; 
and machinery, that cost millions of dollars, rusting and 
rotting; and while hundreds of manufacturers, invited to 
Ukw shores by the excellence of our form of government, 
are unable to earn a subsistence at their usual trades, and 
are forced to go to Canada or Nova Scotia, or to return to 
Europe. About fifty sailed from hence in one vessel a few 
days since. 

This destructive policy is about to receive a considera- 
ble extension, to the injury of our farmers. Wheat, we are 
informed, can be sold in our ports from Odessa, at seventy- 
five cents or less, per bushel; and we are assured, that 
large quantities of it will be imported. Thus this unhap- 
py nation, by a miserable and mistaken policy, is doomed 
to bleed at every pore. 

Under the influence of such a wretched system, is it 
wonderful that distress and embarrassment pervade the 
nation — that the enlivening sound of the spindle, the loom, 
and the hammer, has in many places almost ceased to be 
heard — that our merchants and traders are daily swept 
away by bankruptcy, one after another — that our banks 
are drained of their specie — that our cities exhibit an un- 
varying scene of gloom and despair — that confidence be- 
tween man and man is almost extinct— that debts cannot 
in general be collected — that property cannot be sold but 
at enormous sacrifices — that capitalists have thus an op- 
portunity of aggrandizing themselves at the expense of the 
middle class of society to an incalculable extent — that mo- 
ney cannot be borrowed but at an extravagant interest — 
in a word, that with advantages equal to any that Heaven 
has ever bestowed on any nation, we exhibit a state of 
things at which our enemies must rejoice — and our friends 
put on sackcloth and ashes! 

A 2 



We trust the day is not far distant, when we shall look 
back with as much astonishment at this lamentable folly, 
as we now do at the folly and wickedness of our ancestors 
in hanging and burning witches. The folly in both cases 
is about equal. Theirs, however, was limited to a narrow 
sphere, out of which it was perfectly innocuous. But ours 
extends its baleful influence to the remotest extremities of 
the nation. 

We are gravely told, by writers on whom great reliance 
is unfortunately placed, that our circumstances as a na- 
tion being materially different from those of other nations, 
we require a totally different policy — and that however 
proper or necessary it may be for England or France, to 
encourage manufactures, sound policy dictates a different 
course for the United States. 

These positions are the reverse of truth, and, so far as 
they have had influence, have proved highly pernicious. 
We are, on the contrary, more imperiously called on to 
encourage manufactures than most other nations, unless 
we are disposed wantonly to sacrifice the interests of a 
most important and numerous portion of our population, 
those farmers and planters who are remote from the sea- 
board. We request a patient hearing while we offer our 
reasons. 

In a compact country, like England, where inland navi- 
gation is caivried to such a wonderful extent, there are few 
parts of the kingdom that are not within one or two days 
carriage of the seaboard — and consequently their produc- 
tions can be transported to foreign markets at a moderate 
expense. Whereas a large portion of our agricultural citi- 
zens are from tliree hundred to a thousand miles distant 
from any seaport, and therefore almost wholly debarred 
from all foreign markets, especially at the present and all 
probable future prices. 

Flour has been forwarded to the Philadelphia market 
from Pittsburg, at a freight of four dollars per barrel. Some 
of it was probably brought to Pittsburg, from fifty to a 
hundred and fifty miles, at considerable expense. Deduct 
the expenses and profits of the Pittsburg merchants, from 
six or seven dollars, and in what a lamentable situation it 
places the farmer — how miserable a remuneration he has 
for his labour — and how " dear he pays for the whistle,^^ in 
buying his goods cheap in Hindostan, and depending &ti 
European markets for the sale of his productions! 



PREFACE. V^l 

The folly of this system is so extravagant, that it re* 
quires a little further notice, A farmer in the neighbour- 
hood of Pittsburg, sends his produce to that city, whence 
it is conveyed to Philadelpnia, three hundred miles by 
land — or to New-Orleans, two thousand miles by water. It 
is thence conveyed four thousand miles to Liverpool, from 
whence he receives his china, his delftware and his pottery* 
From the amount of his flour, as sold in England, all the 
expenses of transportation are to be deducted-^-and to the 
price of his china and other articles the expenses of the 
return voyage are to be added. What a frightful view of 
the situation of a large portion of the people of the western 
country does this sketch exhibit? Is it difficult to account 
for the prostrate state of affairs in that part of the union, 
and under a government which, emanating more complete- 
ly from the mass of the people than any other that ever 
existed, might have been expected to have extended a 
more paternal care over its citizens than the world ever 
witnessed! 

It is therefore indubitable, that to the reasons for encou- 
raging manufactures, that exist in England and France, all 
of which apply here, is to be added a powerful one peculiar 
to the United States, arising from the distance between so 
large a portion of our territory and any seaport towns, as 
well as the immense distance from those towns to the pla- 
ces whence we draw our supplies. 

Let us suppose for a moment, that the western farmer, 
instead of purchasing his pottery and delftware in Eng- 
land, had in his own neighbourhood manufactories of those 
articles, whence he could procure them free of the enor- 
mous expenses of sea and land carriage, amounting in ma- 
ny instances to treble the first cost — and that in return he 
supplied the manufacturer, of whom he purchased them, 
with his wheat, and corn, anJ other articles! — What a dif- 
ferent face that country would wear! What rapid strides 
it would then make in the career of prosperity!— What ad^ 
ditionial allurements it would hold out to emigrants! 

We offer for reflection, fellow-citizens, an important 
fact, that sheds the strongest light on this theory. The set- 
tlement of Harmony in the western country, was conduct- 
ed on this plan. This little commonwealth depended wholly 
on itself for supplies. It had, to use the cogent language m 
Mr. Jefferson, ^'placed the manufacturer beside the agricul- 
uristJ^^ What was the consequence? The settlement made 



nn " PREFACE. 



a more rapid advance in wealth and prosperity than any 
equal body of men in the world at any period of tijne — 
more, in one year, than other parts of the United States, 
which depend on foreign markets for the sale of their pro- 
duce and the supply of their wants, have done in ten. 

It is frequently stated, that as some of the cotton ma- 
nufacturers in the eastern states have prospered, the pro- 
tection to the manufacture is adequate. If this argument 
warranted the inference drawn from it, it would prove that 
the policy of Spain is sound, and fraught with wisdom; for 
notwithstanding the decay of that nation, there are in it 
many prosperous manufactures, which, from particular cir- 
cumstances, are, like some of those in the eastern states, 
enabled to struggle against foreign competition.-— But the 
decay of so large a portion of the manufacturing esta- 
blishments in the middle and eastern states, notwithstand- 
ing the enterprise, large capital, and industry of the pro- 
prietors, is a full proof that there is not sufficient protec- 
tion to this important branch. 

Public attention has unfortunately been diverted from 
the real sources of our prostrate state, by certain trite com- 
mon places, re-echoed througliout the union, — that it is a 
time of general suffering — that distress and embarrass- 
ment pervade the whole civilized world — that we are no 
worse than other nations—and that we cannot hope for an 
exemption from the common lot of mankind. 

This appears plausible — ^but will not stand the test of 
examination. It is not wonderful that the nations of Eu- 
rope, exhausted by a twenty years v/ar — pillaged and 
plundered by hostile armies — with expensive governments 
and immense armies to support in time of peace — and 
groaning under the weight of enormous debts and grinding 
tithes and taxes, should be in a state of suffering. But there 
is no parallel between their situation and ours. Our short 
war, far from exhausting our resources, developed them. 
We retired from it prosperous and glorious. Our fields are 
as fertile — our citizens as industrious and ingenious — our 
capacity for manufacturing as great as ever — and our taxes 
are comparatively insignificant. Our distresses cannot 
therefore be traced to the same source as theirs. They 
flow wholly from our own mistaken policy, which leads us 
to purchase abroad what we could produce at home — and, 
like thoughtless prodigals and spendthrifts, to incur debts 
beyond our utmost means of payment. 



PREFACE. 



Vk 



The restoration of peace, however, as might have been 
aatu rally expected, greatly affected our commerce, parti- 
cularly the carrying trade, of which the war had given us 
an inordinate share. An immense capital, invested in com- 
merce, was thus rendered wholly unproductive, and, had 
manufactures been encouraged, as sound policy dictated, 
hundreds of our merchants, whose property has since 
wasted away, and who have been swallowed up in the vor- 
tex of bankruptcy, would, as was the case during the war, 
have transferred their talents, their industry, and their ca- 
pital to that department, to the advancement of their own 
interest and the general welfare; instead of a vain strug- 
gle in a branch which was so crowded, that it could not af- 
ford support to more than half the persons engaged in it. 
Those that remained in the mercantile profession, after 
such a transfer of a portion of its members to profitable 
employment of another description, might and probably 
would have prospered. And thus it is as clear as the noon- 
day sun, that an efficient protection of manufactures would 
have been highly advantageous to the merchants; although 
many of them, from taking a superficial view of the sub- 
ject, have been under an opposite impression, and have 
unfortunately been hostile to such protection. 

The advocates of the system of Adam Smith ought to be 
satisfied with the fatal experiment we have made of it. It 
is true, the demands of the treasury have not allowed us to 
proceed its full length, and to discard import duties altoge- 
ther. But if our manufactures are paralized, our manufac- 
turers ruined, and our country almost wholly drained of 
its metallic medium, to pay for foreign merchandize, not- 
withstanding the duties imposed for the purpose of reve- 
nue, it is perfectly reasonable to conclude, that the destruc- 
tion would have been more rapid and complete, had those 
duties not existed. This we hope will be regarded as decl-'^ 
sive; for if our woollen manufacture, for instance, protect- 
ed, as it is termed, by a duty of 27 i -2 per cent., has been 
more than one half destroyed, so that it was no longer an 
object to preserve the invaluable breed of Merino sheep, in 
which millions of dollars were invested, and of which the 
greater part have been destroyed, to tlie ruin of the pro- 
. prietors, it cannot be doubted that without such duty, it 
would have been at once wholly annihilated, as our citi- 
zens would in that event have been utterly unable to main- 
tain a struggle against foreign rivals. If argument were of 



PREFACE, 



avail against the dazzling authority of great names, an& 
against ingrained, inveterate prejudice, this case would 
settle the question for ever. Where are now, we ask, the 
** collateral branches,'^^ to which the thousands of our art- 
ists, mechanics, and manufacturers, " thrown out of their 
ordinary employment, and common method of subsistence,^^ 
can ** easily transfer their industry,^^"^ as Dr. Smith asserts? 

Another part of Dr. Smith's theory, is, that when a par- 
ticular branch of industry is destroyed by " the home mar- 
ket being suddenly laid open to the competition of foreign- 
ers^^ " the stock will still remain in the country, to employ 
an equal number of people in some other way.^^ And there- 
fore " the capital of the country remaining the same, the de- 
mand for labour will still be the same, thuogh it may be ex- 
erted in different places, and for different occupations.^^\ 
These maxims are now fairly tested in the United States, 
as they have been for centuries in Spain. The cotton, 
woollen, pottery, glass, and various other manufactures, 
have been in a great measure suspended in the middle 
states, by " the home market being suddenly laid open to the 
competition of foreigners'^^ at the close of the war. Is there 
a man who will venture to assert, that " the demand for 
labour is the same?^^ that " the stock remains the same?^^ or 
that it " employs an equal number of people in some other 
tvay?^^ We flatter ourselves that the most decided advo- 
cate of the doctor's system will admit, on calm reflection, 
that these maxims are utterly destitute of even the shadow 
of foundation. 

We urge this point on the most sober and serious reflec- 
tion of our fellow-citizens. It is a vital one, on which the 
destinies of this nation depend. The freedom of commerce, 
wholly unrestrained by protecting duties and prohibitions, 
is the keystone of the so much extolled system of the doc- 
tor, which, though discarded, as we have stated, in almost 
every country in Europe, has, among our most enlightened 
citizens, numbers of ardent, zealous, and enthusiastic ad- 
mirers. We have essayed it as far as our debt and the sup- 
port of our government would permit. We have discarded 
prohibitions; and on the most important manufactured ar- 
ticles, wholly prohibited in some countries, and burdened 
with heavy prohibitory duties in others, our duties are 
comparatively low, so as to afford no eftectual protection 

* Wealth of Nations, 1. 329-30. f Ibid. 



PREFACE* Xl^ 

to the domestic manufacturer. Tlie fatal result is before the 
worhi — and in every part of the union is strikingly per- 
ceptible. Tn addition to the example of Spain and Portu- 
ffal, it holds out an awful beacon aj^ainst the adoption of 
theories, which, however splendid and captivating on pa- 
per, are fraught with ruin when carried into practice. 

This is the basis on which Adam Smith's system rests, 
and being thus proved radically and incurably unsound, 
the whole fabric must crumble to ruins. 

There is one point of view in which if this subject be 
considered, the egregious errors of our system will be ma- 
nifest beyond contradiction. The policy we have pursued 
renders us dependent for our prosperity on the miseries 
and misfortunes of our fellow-creatures! Wars and fa- 
mines in Europe are the keystone on which we erect the 
edifice of our good fortune! The greater the extent of war, 
and the more dreadful the ravages of famine, in that quar- 
ter, the more prosperous we become! Peace and abundant 
crops there undermine our welfare! The misery of Europe 
ensures our prosperity — its happiness promotes our decay 
and prostration!! What an appalling idea! Who can re- 
flect without regret on a system built upon such a wretched 
foundation! 

What a contrast between this system and the one laid 
down with such ability by Alexander Hamilton, which we 
advocate. Light and darkness are not more opposite to 
each other. His admirable system would render our pros- 
perity and happiness dependent wholl^r on ourselves. We 
should have no cause to wish for the misery of our fellow 
men, in order to save us from the distress and embarrass- 
ment which at present pervades the nation. Our wants 
from Europe would, bv the adoption of it, be circumscribed 
within narrower limits, and our surplus raw materials be 
amply adequate to procure the necessary supplies. 

Submitting these important subjects to an enlightened 
community, and hoping they will experience a calm and 
unbiassed consideration, we ardently pray for such a re- 
sult as may tend to promote and perpetuate the honour, 
the happiness, and the real independence of our common 
country. 

We conclude with submitting to the legislature of the 
United States, on whose decision depends the perpetua- 
tion of existing distress, or the restoration of the country, 



XU PREFACE. 

to that high grade of prosperity from which a false policy 
has precipitated her, the following luminous maxims; viz. 

" The uniform aipearance of an abundance of specie, as 
the concomitant of a flourishing state of manufactures, and 
of the reverse where they do not prevail, afford a strong pre- 
sumption of their favourable operation on the wealth of a 
CO mtry,* 

" Considering a monopoly of the dom estic market to its own 
manufacturers, as the reigning policy of manufacturing na- 
tions, a similar policy, on the part of the United States, in 
every proper instance, is dictated, it might almost be said, by 
the principles of distributive^ justice^ certainly by the duty 
of eyideavouring to secure their own citizens a reciprocity of 
advantages'^ 

" The United States cannot exchange with Europe on 
equal terms.^^X 

" That trade is eminently bad w ich supplies the sam^ 
goods as we manufacture ourselves; especially, if we can 
make enough for our own consumption4^^ 

* Hamilton's Works, vol 1 p. 217. f Idem, p. 225. 

t Idem, 186. { British Merchant, vol. I. p. 4. 



ADDRESSES 



OF THE 



PHILADELPHIA SOCIETY, ^c. 



NO. I. 

Philadelfihia^ March 27, 1819. 

FRIENDS AND FELLOW CITIZENS, 

The Philadelphia Society for the Promotion of Nation- 
al Industry, respectfully solicit your attention to a few 
brief essays on topics of vital importance to your country, 
yourselves, and your posterity. They shall be addressed 
to your reason and understanding, without any attempt to 
bias your feelings by declamation. 

Political economy shall be the subject of these essays. 
In its broad and liberal sense, it may be fairly styled the 
science of promoting human happiness; than wiiich a 
more noble subject cannot occupy the attention of men 
endowed with enlarged minds, or inspired by public spirit. 

It is to be regretted that this sublime science has not 
had adequate attention bestowed on it in this country. 
And unforiuiiately, so many contradictory systems aie in 
existence, that statesmen and legislators, disposed to dis- 
charge their duty conscienuously, and for that purpose 
to study the subject, are liable to be confused and dislract- 
ed by the unceasing discordance in the views of the writers. 

It is happily, nevertheless, true, that its leading prin- 
ciples, which safely conduct to the important and benefi- 
cent results, that are its ultimate object, are plaiti and 
clear; and, to be distinctly comprehended, and faithfully 
carried into effect, require no higher endowments than 
good sound sense and rectitude of intention. 

It is a melancholy feature in human affairs, that impru- 
dence and error often produce as copious a harvest of 
wretchedness as absolute wickedness. Hence arises the 
imperious necessity, in a country where so many of our 

B 



14 Review of some Maxims 

citizens may aspire to the character of legislators and 
statesmen, of a more general study of this science, a tho- 
rough know led p;e of which is so essential a requisite, 
among the qualifications for those important stations. 

To remove ail doubt on this point, we shall adduce, in 
the course of these essays, instances in which single errors 
of negotiators and legislators have entailed full as much, 
and in many cases more misery on nations, than the wild 
and destructive ambition of conquerors. Unless in some 
extraordinary instances, a sound policy, on the restoration 
of peace, heals the wounds inflicted by war, and restores 
a nation to its pristine state of ease and comfort. But 
numerous cases are on record, wherein an article of a 
treaty, of ten or a dozen lines, or an impolitic or an unjust 
law, has germinated into the most ruinous consequences 
for a century. 

It is our intention, 

1. To review the policy of some of those nations which 
have enjoyed a high degree of prosperity, with or without 
any extraordinary advantages from nature; and likewise of 
those whose prosperity had been blasted by fatuitous coun- 
sels, notwithstanding great natural blessings: 

2. To examine the actual situation of our country, in 
order to ascertain whether we enjoy the advantages to 
which our happy form of government and local situation 
entitle us; and, if we do not, to investigate the causes to 
which the failure is owing: 

3. To develop the true principles of political economy, 
suited to our situation and circumstances, and calculated 
to produce the greatest sum of happiness throughout the 
wide expanse of our territory. 

In this arduous undertaking, we request a patient and 
candid hearing from our fellow-citizens. We fondly hope 
for success; but if disappointed, we shall have the conso- 
lation of having endeavoured to discharge a duty every 
good citizen owes to the country which protects him; the 
duty of contributing his efforts to advance its interest and 
happiness. 

As a preliminary step, we propose to establish the ut- 
ter fallacy of some maxims, supported by the authority 
of the name of Adam Smith, author of The Wealth of 
Nations, but pregnant with certain ruin to any nation by 
which they may be carried into operation. This course 
is prescribed to us by the circumstance, that the influence 



Of the Wealth of JSTations. 15 

of these maxims has been sensibly felt in our councils and 
has deeply affected o\ir prosperity. 

This writer stands so pre-eminent in the estixnation of 
a large portion of Christendom, as the delphic Oracle of 
political economy, and there is such a magic in his name, 
that it requires great hardihood to encounter him, and a 
high degree of good fortune to obtain a fair and patient 
hearing for the discussion. 

But at this enlightened period we trust our citizens will 
scorn to surrender their reason into the guidance of any 
authority whatever. When a position is presented to the 
mind, the question ought to be, not who delivered it, but 
what is its nature? and, how is it supported by reason and 
common sense, and especially by fact? A theory, how 
plausible soever, and however propped up by a bead-roll 
of great names, ought to be regarded with suspicion, if un- 
supported by fact — but if contrary to established fact, it 
ought to be unhesitatingly rejected. This course of pro- 
cedure is strongly recommended by the decisive fact, that, 
in the long catalogue of wild, ridiculous and absurd theo- 
ries on morals, religion, politics or science, which have 
had their reign among mankind, there is hardly one that 
has not reckoned among its partisans, men of the highest 
celebrity.* And in the present instance, the most cogent 
and conclusive facts bear testimony against the political 
economist, great as is his reputation. 

We hope, therefore, that our readers will bring to this 
discussion, minds wholly liberated from the fascination of 
the name of the writer whose opinions we undertake to 
combat, and a determination to weigh the evidence in the 
scales of reason, not those of prejudice. 

In order to render Dr. Smith full justice, and to re- 

* Montesquieu, whose reputation was as great as that of Dr. 
Smith, and whose Spirit of Laws has had as extensive a currency 
as the Wealth of Nations, held the absurd idea, which remained 
uncontroverted for half a century, that the habits, manners and 
customs, and even the virtues and vices of nations, were in a great 
measure governed by climate, whence it would result that a tolera- 
ble idea might be formed of those important features of national 
character, by consulting" maps, and ascertaining latitudes and 
longitudes! Bacon studied judicial astrolog-y! All the great men 
of his day believed in magic and witchcraft! Johnson had full 
faith in the story of the Cocklane-Ghost! So much for great 
names. 



16 Revieiv of some Maxims 

move all ground for cavil, we state his propositions at 
length, and in his own language, 

*^ To give the monopoly of the home market to the 
produce of domestic industry, in any particular art or 
manufacture, is in some measure to direct private people 
in what manner they ought to employ their capitals; and 
must, in almost all cases, be either a useless or a hurtful 
regulation. If the domestic produce can be brought there 
as cheap as that of foreign industry, the regulation is evi- 
dently useless. If it cannot, it must generally be hurtful. 
" It is the maxim of every prudent master of a family, 
never to attempt to make at home what it will cost him 
more to make than to buy. The tailor does not attempt; 
to make his own shoes, but buys them of the shoemaker. 
The shoemaker does not attempt to make his own clothes, 
but employs a taylor. The farmer neither attempts to 
make one nor the other, but employs those different arti- 
ficers. All of them find it for their interest to employ 
their whole industry in a way in which they have some 
advantage over their neighbours; and to purchase, with a 
part of its produce, or, what is the same thing, with the 
price of a part of it, whatever else they have occasion for. 
" That which is prudence in the conduct of every pri- 
vate family, can scarcely be folly in that of a great king- 
dom. If a foreign country can supply us with a commo- 
dity cheaper than we ourselves can make it, better buy it 
from them, with some part of the produce of our country, 
employed in a way in which we have some advantage. 

" The general industry of the country being in propor- 
tion to the capital which employs it, will not thereby be 
diminished, any more than that of the above-mentioned 
artificers; but only left to find out the way in which it can 
be employed with the greatest advantage. It is not so 
employed, when directed to an object which it can buy 
cheaper than it can make. The value of its annual pro- 
duce is certainly more or less diminished, when it is thus 
turned away from producing commodities evidently of 
more value than the commodity which it is directed to 
produce. According to the supposition, that commodity 
could be purchased from foreign countries cheaper than it 
can be made at home. It could, therefore have been 
purchased with part only of the commodities, or, what is 
the same thing, with a part only of the price of the com- 
modities, which the industry employed by an equal capi- 



Of the Wealth ofJVations. 17 

tal would have produced at home, had it been left to pur- 
sue its natural course."* 

There is in the subordinate parts of this passage much 
sophistry and unsound reasoning, which we may examine 
on a future occasion; and there is likewise, as in ail the 
rest of the doctor's work, a large proportion of verbiage, 
which is admirably calculated to embarrass and confound 
common understandings, and prevent their forming a cor- 
rect decision. But, stripped of this verbiage^ and brought 
naked and unsophisticated to the eye of reason, the main 
proposition which we at present combat, and to which we 
here confine ourselves, is, that, 

" If a foreign country can supply us with a comm.odity 
cheaper than we ouiselves can make it, better buy of them, 
with some part of the produce of our own industry, em- 
ployed in a way in which we have some advantage." 

The only rational mode of testing the correctness of 
any maxim or principle is, to examine what have been its 
effects where it has been carried into operation, and 
what v/ould be its effects in any given case where it might 
be applied. This is the plan we shall pursue in this in* 
vestigation. 

Great Britain affords a felicitous instance for our pur- 
pose. Let us examine what effect the adoption of this 
maxim would produce on her happiness and prosperity. 

There are above a million of people, of both sexes and 
of all ages, employed in that country, in the woollen and 
cotton manufactures. t By their industry in these branches, 
they make for themselves and families a comfortable sub- 
sistence. They afford a large and steady market for the 
productions of tlue earth, giving support to, probably, at 
least a million of persons engaged in agriculture; and 
moreover, enrich the nation by bringing into it wealth 
from nearly all parts of the earth. The immense sums 
of money they thus introduce into their native country af- 
ford means of employment, and ensure happiness to mil- 
lions of other subjects — and thus, like the circles made 

* Wealth of Nations, vol. i. p. 319. 

f Dr. Seybert states, that in 1809, there were 800,000 persons 
in Great Britain engaged in the cottori manufacture alon^i. It 
has since increased considerably. It is, therefore, probable that 
the two branches employ at least IjSOOjOOO persons. — Statistics^ 
p. 92. 

B 2 



18 Rev iew of some Maxim s 

on the surface of the stream by the central pebble thrown 
in, the ran^e of happiness is extended so wide as to em- 
brace the whole community. 

From this cheering prefect, let us turn the startled eye 
to the masses of misery, which Dr. Smith's system would 
produce; and we shall then behold a hideous contrast, 
which, we trust, escaped the doctor's attention; for the 
acknowledged goodness and benevolence of his character, 
will not allow us to believe that he would have been the 
apostle of such a pernicious doctrine, had he attended to 
its results. We fondly hope, that, like many other vision- 
ary men, he was so deeply engaged in the fabrication of a 
refined theory, that he did not arrest his progress to weigh 
its awful consequences. 

The East Indies could at all times, until the recent im- 
provements in machinery, have furnished cotton goods at 
a lower rate than they could be manufactured in England, 
which had no other means of protecting her domestic in- 
dustry, but by a total prohibition of the rival fabrics. Let 
us suppose that France, where labour and expenses are 
much lower than in England, has possessed herself of 
machinery, and is thus enabled to sell woollen goods at 
half, or three-fourths, or seven-eighths of the price of the 
English rival commodities. Suppose, further, that arti- 
cles manufactured of leather are procurable in South 
America, and iron wares in Sweden, below the rates in 
England. Then, if the statesmen of the last nation were 
disciples of Adam Smith, as '* foreign countries can sup- 
ply them with those commodities cheaper than they them- 
selves can make them," they must, according to the doc- 
tor, " buy from them v/ith some part of the produce of 
their own country," and accordingly open their ports 
freely to those various articles, from these four particular 
nations. Who can contemplate the result without horror? 
What a wide spread scene of ruin and desolation would 
take place? The wealth of the country would be swept 
away, to enrich foreign, and probably hostile nations, which 
might, at no distant period, make use of the riches and 
strength thus fatuitously placed in their hands, to enslave 
the people who had destroyed themselves by following 
such baneful counsels. The labouring and industrious 
classes would he at once bereft of employment; reduced 
to a degrading state of dependence and mendicity; and, 
through the force of misery and distress driven to prey 



Of the Wealth of J^ations. 19 

upon each other, and upon the rest of the community. 
The middle classes of society would partake of the dis- 
tress of the lower, and the sources of the revenues of the 
higher orders be dried up.* And all this terrific scene 
of wo, and wretchedness, and depravity, is to be produced 
for the grand purpose of procuring broad-cloth, and mus- 
lins, and shoes, and iron ware, in remote parts of the earth, 
a few shillings per yard, or piece, or pound, cheaper than 
at home! The manufacturers of Bombay, and Calcutta, 
and Paris, and Lyons, and Stockholm, are to be fed, and 
clothed, and fostered by English wealth, while those of 
England, whom it ought to nourish and protect, are ex- 
pelled from their workshops, and driven to seek support 
from the overseers of the poor. We trust this will not be 
thought a fancy sketch! Such a view of it would be an 
extravagant error. It is sober, serious reality; and puts 
down for ever this plausible, but ruinous theory. Ponder 
well on it, fellow citizens. 

Let us suppose another strong case. The cotton pro- 
duced in this country, amounts, probably, to 40 millions>of 
dollars annually.! We will suppose the minimum of the 
price, at which it can be sold, to pay for the labour and in- 
terest on the capital employed in its culture, to be 12 
cents per pound. We will further suppose, that the 
southern provinces of Spanish America have established 
their independence, and are able to supply us with this 
valuable raw material at the rate of ten cents. Ought we, 
for the sake of saving a few cents per pound, to destroy 
the prospects, and ruin the estates of nearly 800,000 in- 
habitants of the southern states — to paralize a culture so 
immensely advantageous, and producing so large a fund 
of wealth, and strength and happiness? Should we, for 
such a paltry consideration, run the risk of consequences 
which cannot be regarded without awe, and which could 
not fail eventually to involve in ruin, even those who might 
appear in the first instance to profit by the adoption of the 
system? * 

It may be well worth while to proceed a step further, 
and take the case of a nation able to supply us fully and 
completely with wheat and other grain at a lower rate than 
our farmers can furnish them. Thus then we should find 

* No small portion of this picture is rapidly reahzing in this 
country. f Tench Coxe. 



20 Review of some Maxims 

ourselves pursuing Adam Smith's sublime system; buy- 
ing cheap bargains of wheat or flour from one nation, cot- 
ton from another, hardware from a third; and, to pursue 
the system throughout, woollen, and cotton, and linen 
goods from others; while our country was rapidly impo- 
verishing of its wealth, its industry paralized, the labour- 
ing part of our citizens reduced to beggary, and the farm- 
ers, planters, and manufacturers, involved in one common 
mass of ruin. The picture demands the most sober, se- 
rious attention of the farmers and planters of the United 
States. 

It may he asserted, that the supposition of our country 
being fully supplied with cotton and grain, by foreign na- 
tions, is so improbable, as not to be admissible even by 
way of argument. This is a most egregious error; our 
supposition, so far as it respects cotton, is in '' the full tide 
of successful experiment." That article, to a great 
amount, is even at present imported from Bengal, and sold 
^t a price so far below our own, (difference of quality con- 
sidered) that our manufacturers find the purchase eligible. 
Let it be considered, that in 1789, doubts were entertained 
"whether cotton could be cultivateu in the United States;* 
that in the year 1794, there were exported from this 
country, of foreign and domestic cotton, only seven thou- 
sand bags;t and yet, that in 1818, the amount exported 
was above ninety-two millions of pounds. No man can be 
so far misled as to suppose that Heaven has given us any 
exclusive monopoly of the soil and climate calculated for 
such extraordinary and almost incredible advances. The 
rapid strides we have made, may be also made by other 
nations. Cotton is said to be shipped at Bombay for three 
pence sterling per lb.; and therefore, setting South America 
wholly out of the question, it can hardly be doubted, from 
the spirit with which the culture of that plant is prose- 
cuted in the East Indies, and the certainty that the seeds 
of our best species have been carried there, that in a few 
years that country will be able, provided Adam Smith's 
theory continues to be acted upon here, to expel our plan- 
ters from their own markets, after having driven them 
from those of Europe. It is not, therefore, hazarding much 
to assert, that the time cannot be very remote, when 
southern cotton industry will be compelled to supplicate 

* Seybert's Statistics. f Idem, p. 94. 



Of the Wealth of Nations. 21 

congress for that legislative protection, for which the 
manufacturing industry of the rest of the union has so 
earnestly implored that body in vain; and which, had it 
been adequately afforded, would have saved from ruin 
numerous manufacturing establishments, and invaluable 
machinery, which cost millions of dollars — now a dead and 
irreparable loss to the enterprising proprietors. Had these 
establishments been preserved, and duly protected, they 
Avould have greatly lessened our ruinously unfavourable 
balance of trade, and of course prevented that pernicious 
drain of specie, which has over -spread the face of our 
country with distress, and clouded (we trust only tempo- 
rarily) as fair prospects as ever dawned on any nation.* 

We have given a slight sketch of the effects the adop- 
tion of this system would produce in England and the 
United States, if carried into complete operation; and also 
glanced at the consequences its partial operation has al- 
ready produced here. We now proceed to take a cursory 
view (reserving detail for a future occasion) of its lamen- 
table resuhs in Spain and Portugal, where the statesmen 

* This view may appear too gloomy. Would to heaven it were! 
A cursory glance at some of the great interests of the United 
States will settle the question. Cotton, the chief staple of the 
country, is falling, and not likely to rise: as the immense quanti- 
ties from the East Indies have glutted the English market, which 
regulates the price in ours. Affairs in the western country, on 
which so many of our importers depend, are to the last degree un- 
promising. The importers, of course, have the most dreary and 
sickening prospects before them. They are deeply in debt, their 
resources almost altogether suspended, and a large proportion ul- 
timately precarious. Commerce and navigation languish every 
where, except to the East Indies, the most ruinous branch we 
carry on. Further, notwithstanding nearly eight millions of specie 
were imported by the Bank of the U. States at a heavy expense, 
in about one year; so great has been the drain, that the banks are 
generally so slenderly provided, as to excite serious uneasiness. We 
are heavily indebted to England, after having remitted immense 
quantities of government and bank stock, whereby' we shall be laid 
under a heavy and perpetual annual tax for interest. Our manu- 
factures are in general drooping, and some of them are one- half 
or two-thirds suspended. Our cities present the distressing view 
of immense numbers of useful artizans, mechanics, and manufac- 
turers, willing to work, but unable to procure employment.' We 
might proceed with the picture to a great extent; but presume 
enough has been stated to satisfy the most incredulous, that the 
positions in the text are by no means exaggerated. 



22 Review of some Maxi?ns 

are disciples of Adam Smith, and where the theory which 
now goes under the sanction of his name has been in ope- 
ration for centuries. As '' foreign countries can supply 
them with commodities cheaper than they themselves can 
make them,'* they therefore consider it " better to buy 
from them, with some part of the produce of their own 
country." 

Fellow citizens, consider the forlorn and desperate state 
of those countries, notwithstanding the choicest blessings 
of nature have been bestowed on them with lavish hand; 
industry paralized, and the enormous floods of wealth, 
drawn from their colonies, answering no other purpose but 
to foster and encourage the industry, and promote the 
happiness of rival nations; and all obviously and undenia- 
bly the result of the system of " buying goods where they 
are to he had cheafiest^^ to the neglect and destruction of 
their domestic industry. With such awful beacons before 
your eyes, can you contemplate the desolating effects of 
the system in those two countries, without deep regret, 
that so many of our citizens, and some of them in high and 
elevated stations, advocate its universal adoption here, and 
are so far enamoured of Dr. Smith's theory that they re- 
gard as a species of heresy the idea of appealing to any 
other authority, on the all-important and vital point of the 
political economy of nations! 

To avoid prolixity, we are obliged to postpone the con- 
sideration of other positions of Dr. Smith on this subject; 
and shall conclude with a statement of those maxims of 
political economy, the soundness of which is established by 
the experience of the wisest as well as the most fatuitous 
nations of the earth. 

1 . Industry is the only sure foundation of national vir- 
tue, happiness, and greatness: and, in all its useful shapes 
and forms, has an imperious claim on governmental pFO- 
tection. 

2. No nation ever prospered to the extent of which it 
was susceptible, without due protection of domestic in- 
dustry. 

3. Throughout the world, in all ages, wherever industry 
has been duly encouraged, mankind have been uniformly 
industrious. 

4. Nations, like individuals, are in a career of ruin when 
their expenditures exceed their income. 

5. Whenever nations are in this situation, it is the impe- 



Of the Wealth of J^ations. 23 

rious duty of their rulers to apply such remedies, to cor- 
rect the evil, as the nature of the case may require. 

6. There are few, if any, political evils, to which a wise 
legislature, untrammelled in its deliberations and deci- 
sions, cannot apply an adequate remedy. 

7. The cases of Spain, Portugal, and Italy, prove be- 
yond controversy, that no natural advantages, how great 
or abundant soever, will counteract the baleful effects of 
unsound systems of policy; and those of Venice, Genoa, 
Switzerland, Holland, and Scotland, equally prove, that no 
natural disadvantages are insuperable by sound policy. 

8. Free government is not happiness. It is only the 
means, but, wisely employed, is the certain means of in- 
suring happiness. 

9. The interests of agriculture, manufactures, and com- 
merce, are so inseparably connected, that any serious in- 
jury suffered by one of them must materially affect the 
others. 

10. The home market for the productions of the earth 
and manufactures, is of more importance than all the for- 
eign ones, even in countries which carry on an immense 
foreign commerce. 

1 1 . It is impossible for a nation, possessed of immense 
natural advantages, in endless diversity of soil and climate 
— in productions of inestimable value — in the energy and 
enterprize of its inhabitants — and unshackled by an op- 
pressive debt — to suffer any great or general distress, in 
its agriculture, commerce, or manufactures, (war, fa- 
mines, pestilence and calamities of seasons excepted) un- 
less there be vital and radical errors in its system of poli- 
tical economy. 



NO. 11. 

Philadelfihia,jlfiril7^ 1819. 
Dr. Smith's maxim, discussed in our first number, in- 
evitably involves in its consequences, as we have proved, the 
destruction of those manufacturing establishments, which 
produce articles that can be purchased " cheaper abroad 
than they can be made at home;" and its necessary result 
is, to deprive those engaged in them of employment. The 



^i Review of some Maxima 

doctor, after having inflicted a deadly wound by this 
maxim, undertakes lo provide a sovereign and infallible 
remedy for the eviL which, to do him and his system jus- 
tice, we sh'ill exhibit in his own words: — It remains to 
examine how fur the prescription applies a remedy to the 
evil. 

I. " Though a number of people should, by restoring 
the freedom of trade ^ br thrown all at once out of their or" 
dinary emfiloyment^ and common method of subsiste?ice^ it 
would by no means follow, that they would thereby be de- 
prived either of employment or subsistence."* 

II. " To the greater t^art of manufactures, there are 
other collateral manufactures of so familiar a nature, that 
a workman can easily transfer his industry from one to 
the other. 

III. " The greater part of such workmen, too, are oc- 
casionally employed in country labour. 

IV. "The stock, which employed them in a particular 
manufacture before, will still remain in the country, to 
employ an equal number of people in some other way. 

V. " The cafiital of the country remaining the same^ the 
demand for labour will still be the same^ though it may be 
exerted in different places, and for different occupations.!** 

Here are five distinct propositions, more clear and plain 
than Dr. Smith's usually are; but, as we hope to make 
appear, all highly erroneous, calculated to lead those 
statesmen astray, who square their system by them, and 
pregnant with ruin to those nations which may be unfor- 
tunate enough to carry them into operation. 

The main point is the facility of " transferring industry^* 
from one branch to a " collateral manfuacture.^* All the 
rest arc but subsidiary to, or explanatory oi this fallacious 
assumption. 

Two questions arise here, both important, and both de- 
manding aflfi! mative answers, in order to support the doc- 
tor's hypothesis. 

I. Are there such " collateral manufactures** as he as- 
sumes, in which men, bereft of enjployment in those de- 
partments of manufacture, which are to be destroyed by 
the doctor's grand and cuptivatiog idea of" restoring the 
freedom of commerce^** may " transfer their industry?** 

It may be conceded, that there is an affinity between the 

* Wealth of Nations, Hartford, 1818, I. 329. \ Idem. 330. 



Of the Wealth of Katiom, 25 

weaving- of cotton and woollen, and a few other manufac- 
tures. But this cannot by any means answer the doctor's 
purpose. Where will he, or any of his disciples, find ^* col- 
lateral manufactures^'^ to employ printers, coach-makers, 
Watch-makers, shoe-makers, hatters, paper-makers, book- 
binders, engravers, letter-founders, chandlers, saddlers, 
silver-platers, jewellers, smiths, cabinet-makers, stone- 
cutters, glass-makers, brewers, tobacconists, potters, wire- 
drawers, tanners, curriers, dyers, rope-makers, brick- 
makers, plumbers, chair-makers, glovers, umbrella- 
makers, embroiderers, calico-printers, paper-stainers, en- 
gine-makers, turners, wheel-rights, and the great variety 
of other artists and manufacturers? There is no such af- 
finhy as he has presumed. And it may be asserted, with- 
out scruple, that if, by what the doctor speciously styles 
" restoring the freedom of trade ^'' five hundred, or a thou- 
sand, or ten thousand hatters, shoe-makers, printers, or 
chandlers, are '♦ thrown out of their ordinary employment," 
there is no ^^ collateral manufacture of so familiar a na- 
turey^ that they " can easily transfer their industry from 
one to another,^^ 

We state a case, plain and clear. We will suppose five 
hundred workmen, and a capital of five hundred thousand 
dollars, employed in the manufacture of watches, coaches, 
and silverplate; and that Switzerland, or Paris, or London, 
fills our markets at such rates as to overwhelm at once 
all competition, and suppress the manufactories. Where 
are the '' collateral manufactures^'^* to receive those op- 
pressed and forlorn workmen, whose prospects, and those 
of their families, are thus blasted? Are they to become 
hatters, or shoemakers, or tailors, or saddlers, or weavers 
or smiths, or carpenters? Is there a man who can per 
suade himself into the belief of such an order of things'/ 
Is there a man who can persuade himself, that " the ge^*" 
ralindustry of the country will not thereby be diminished?''^ 
No: and it is a matter of inexpressible astonishment, that 
such an idea could have ever been hazarded, in a sober 
and serious book, which has been so long regarded as a 
guide to statesmen and legislators. It will not stand the 
test of a moTTient's investigation. As well might we sup 
pose, that, on shutting up the courts of justice, and ex 
pelling t!ie whole corps of lawyers, they might at once 
commence the medical profession, without any previous 
study, as that hatters, or tailors, or shoemakers, or weav- 



26 Review of some Maxims 

ers, or watch-makers, or printers, whom the grand system 
o{ ^^ fiur chasing commodities cheafi^* and the equally grand 
system of " restoring the freedom of commerce^^ might 
bereave of employment, should find those *' collateral ma- 
nufactures^* which Dr. Smith has so kindly provided for 
them. 

We explicitly declare, that we are far from charging 
the doctor with an intention to mislead or deceive. We 
believe him, like many other theorists, to have been duped 
by his own system. But be this as it may, we trust it will 
appear that a more deceptious ground never was assumed. 
We use strong and unequivocal language; as the political 
heresy we combat is of the most pernicious tendency; is 
supported by the most imposing and formidable name in 
the whole range of political science; and ranks among its 
disciples a large portion of those of our citizens whose 
situations as legislators of the Union and of the several 
states, render their errors on this vital point pregnant 
with the most destructive and ruinous consequences. 

II. Suppose every branch of manufactures, without ex- 
ception, to have some '' collateral manufacture:** can 
those who are devested of employment by " restoring the 
freedom of traded* " transfer their industry** so " easily** 
as Dr. Smith supposes? 

We answer distinctly. No: or, at all events, on so small 
a scale, as to be unworthy of notice, in discussions invol- 
ving the best interests and the happiness of nations. To 
test the correctness of this opinion, let it be observed, 
that, in manufacturing countries, all the departments are 
generally full, and not only full, but there are almost always 
supernumeraries in abundance: and therefore, had these 
" collateral manufactories** really existed to the full ex- 
tent the doctor's theory would require, and not been 
"fancy sketches," derived from his fertile imagination, 
there would be no vacancy, to which the objects of the 
doctor's care could " transfer their industry ** 

Although this appears so plain and palpable, as not to 
admit contradiction or dispute, yet, on a point of such 
magnitude, it cannot be time ill-spent, to illustrate it by 
example. 

There are very few branches between which there is 
so much affinity as the cotton and woollen. And if the doc- 
tor's theory would ever stand the ordeal of examination, 
it would be in the case of these two " collateral manufac^ 



Of the Wealth of Mitions. 27 

Bures,'' Suppose, then, that, by the introduction of Easi 
India muslins, four or five hundred thousand persons, 
(about one-half of the whole number engaged in the cot- 
ton manufacture) in England, are at once thrown out of 
employment. Can any man be led to believe, that they 
could find a vacuum in the '' collateral'* woollen manufaC" 
ture'* to which " they could easily transfer their industry P'* 
Fatuity alone could harbour the supposition. They would 
find all the places full and overflowing. 

But the strongest argument against the doctor's " col" 
lateral manufactures^'^ and " transfers of industry^*' re- 
mains. He obviously did not calculate the results of his 
own system, nor take into consideration, that, to give it 
free operation, its pernicious effect would not be confined 
to one or two branches of industry, it would extend to 
the whole body. The fltjod of importation would bear 
down in one mass of ruin, all those articles within his 
description of being " purchased cheaper elsewhere.'* 
What then becomes of his " collateral manufacture sP** 
and" transjers of industry ^'^ zxiA " emfiloyment of cafiital^' 
and all those elegant, sounding phrases, with which he 
rounds off his paragraphs? Are they not swept away^ 
" like the baseless fabric of a vision," not leaving ** a trace 
behind?" 

The doctor with great gravity informs us, that " the 
greater fiart of such workmen are occasionally emfiloyed 
in country labour,'^ This is most extravagantly errone- 
ous; for of all the manufacturers in England or any other 
country, there is not probably one in five, that has ever 
been in his life twelve months at " country labour,'^ Their 
habits and manners wholly incapacitate them for that 
kind of employment. A jeweller, a watchmaker, a hat- 
ter, a shoemaker, or a weaver, would be almost as unfit 
for " country labour^^^ as a ploughman, or a gardener, or 
a shepherd, to make hats or coats. 

But suppose for a moment, through courtesy, we ad- 
mit with Dr. Smith, that all these different manufacturers 
are so much accustomed to " country labour^'' as to be 
adepts at it, what inference is to be drawn from the ad- 
mission? Did the doctor believe, did he intend the world 
to believe, or does there live a man who can believe, that 
when, by the grand project of " restoring the freedom of 
traded' and '^ buying commodities from for eigyi countries^'* 
which can supply us with them " cheaper than we our- 



2F8 Review of some Maxims 

selves can make tkem," thousands and tens of thousands 
of people are *'» all at once thrown out of their ordinary 
employment y and common means of sub distance ^^ they can 
find enipioyinent at ^' country lahour?^^ However extra- 
vagant and childish the idea is, the doctor must have 
meant this, or the words were introduced without any 
meaning whatever. 

But it is well known, that except in harvest time, 
there is in the country no want of auxiliaries. The per- 
sons attached to farms are generally, at all other seasons, 
amply adequate to execute all the ^^ country labour'''^ that 
is necessary. 

Dr. Smith, in order to prove the impropriety of those 
laws whereby rival manufactures are wholly excluded, 
observes, 

" If the domestic produce can be brought there as cheapy 
the regulation is evidently useless. If it cannot .^ it is evi- 
dently hurtful.*^"^ 

This passage is ambiguous, and written in a style very 
different from that usual with Dr. Smith, who is as la- 
vish of words as any writer in the English language, and 
equally lavish of explanations and amplifications. But 
here he falls into the contrary extreme. He does not con- 
descend to give us the reason for those assertions. He 
leaves the reader to divine why " the regulation is use^ 
less?** why " hurtful?""^ We must, therefore, endeavour 
to explore the meaning. It appears to be, if we under- 
stand the first sentence of this maxim, that "all restric- 
tions or regulations," in favour of domestic industry, to 
the exclusion of rival manufactures, are " useless,'* if the 
articles can be made at hofne as cheap** as the imported 
ones; because in that case the domestic manufacturer is 
secure from injury by the competition. 

This is extravagantly erroneous. Suppose our woollen 
manufacturers sell their best broadcloth at eight dollars 
per yard, and that foreign broadcloth to an immense 
amount is imported " g.9 cheap,*' Is it not obvious, that 
the glut in the market, and the ardent competition be- 
tween the two parties, would produce the effect which 
such a state of things has never failed to produce, that is, 
a reduction of the price below the minim.um at which the 
manufacturer could support himself by his labours, and 
that he would therefore be ruined? 

» Wealth of Nations, I, 319. 



Of the Wealth of jVations. 29 

We now proceed to consider the last proposition: — 

" The capital' of the country remaining the same^ the 
demand for labour will still be the same^ though it be eX' 
erted in different filaces^ and in different occufiationa,'*"^ 

To prove the extreme fallacy of this position, we will 
take the case of any particular branch, in which tl^ere are 
one hundred master manufacturers, each worth ten thou- 
sand dollars, forming together, " a cafiital^^ of one mil- 
lion, whose business is destroyed by the " restoration of 
the freedom of commerce^"* and '* the fiur chase of articles 
from abroad cheajier than %ve ourselves can make them** 

It is well known that the property of manufacturers ge- 
nerally consists in buildings for their works, machinery, 
raw materials, manufactured goods, and outstanding debts. 
The result of "Me restoration of the freedom of com* 
merce^'* on Dr. Smith's plan, would be to reduce the va- 
lue of the four first items, from twenty to fifty per centj 
and to bankrupt a large proportion of the proprietors. 

As this is a point of considerable importance, we shall 
take a single instance, which is always more easily com- 
prehended than a number, and yet affords as clear an il- 
lustration. 

We will suppose the case of a tanner, worth thirty 
thousand dollars; of which his various vats, buildings, 
and tools amount to ten thousand; his hides and leather, 
ten thousand; and his outstanding debts, an equal sum. 
By the inundation of foreign leather, sold, we will sup- 
pose, at half price, he is unable to carry on his business^ 
which sinks the value of his vats and buildings three 
fourths, and of his stock one-half. At once, his fortune 
is reduced twelve thousand five hundred dollars: and thus, 
with a diminished capital and broken heart, perhaps in 
his old age, h^ has to go in quest of, but will not find, a 
" collateral manufacture^* to employ that diminished ca- 
pital. Analogous cases without number would occur, by 
the doctor's system oi '' restoring the freedom of trade:'* 
and let us add, as we can with perfect truth, and we hope 
it will sink deep into the minds of the citizens of the Uni- 
ted States, that throughout this country there are number- 
less cases equally strong, which no man of sound mind 
and heart can regard without the deepest sympathy for 
the ill-fated sufferers, and regret at the mistaken policy 
which produced such a state of things. 

* Wealth of Nations, I. 330. 
c 3 



30 Review of some Maxims 

It therefore irresistibly follows, that Dr. Smithes idea> 
that '' the cafiital of the country will be the same,'* after 
the destruction of any branch of manufacture, is to the 
last degree unsound: and, of course, that the superstruc- 
ture built on it partakes of its fallacy. 

The doctor gravely informs us^ " The tailor does not 
make his own shoes, but buys them of the shoemaker. The 
shoemaker does not attempt to triake his .own clothes but 
employs a tailorJ^** And he adds farther, 

" By means of glasses, hot -beds, and hot-walls, very 
good grapes can be raised in Scotland, and very good 
wine too can be made of them, at about thirty times the 
expense for which at least equally good can be brought 
from foreign countries. Would it be a reasonable law to 
prohibit the importation of all foreign wines, merely to 
encourage the making of Claret and Burgundy in Scot- 
land?"! 

From these positions, to which no man can refuse as- 
Sent, he deduces the specious, but delusory maxim of 
<< restoring the freedom of trade,''* which, in fact and in 
truth, is nothing more nor less than impoverishing a na- 
tion, and sacrificing its domestic industry at the shrine 
of avarice, in order to purchase goods " cheaper than 
they can be made at home** 

But by what process of sound reasoning does it follow, 
because the shoemaker will not become a tailor, or the 
tailor a shoemaker; or because it would be folly and mad- 
ness to exclude foreign wines, in order to introduce the 
culture of the vine into Scotland, a country wholly unfit 
for that object; that therefore thousands of men, employ- 
ed in useful branches of business, diffusing happiness 
among tens of thousands of workmen and their numerous 
families, and enriching their country, are to have their 
usefulness destroyed, their prospects blasted, their work- 
men with their families reduced to distress, and the coun- 
try exposed to a ruinous drain of specie? 

These maxims are the basis on which a large portion, 
indeed the most important part of Dr. Smith's work, de- 
pends. If the basis be solid and impregnable, the fabric 
will stand firm: but if the foundation be sandy, the super- 
structure will crumble into ruins. We trust we have fully 
proved that the foundation is thus sandy; and that the ne- 

^^ Wealth of Nations, I. 320 f Idem, 320, 



<>fthe Wealth ofJStations. 31 

cessary and inevitable consequence follows, that the theory 
itself is wholly untenable and pernicious. 

With one more extract, we shall conclude this review: 
" That foreign trade enriched the country, experience 
demonstrated to the nobles and country gentlemen, as 
well as to the merchants; but, Aow, or in what manner^ 
none of them knew! The merchants knew perfectly in 
what manner it enriched themselves. It was their busi- 
ness to know it. But to know in what manner it enriched 
the country^ was no fiart of their business! The subject 
never came into their consideration, but when they had 
occasion to apply to their country for some change in the 
laws respecting foreign trade."* 

It is hardly possible to conceive of a passage more ab- 
surd or erroneous than this. That " the nobles^ and geit" 
tlemen^ and merchants,^^ were ignorant " how foreign trade 
enriched their country^^' is almost too ludicrous to be as- 
sailed by argument, and is a strong instance of the deli- 
rium, in which enthusiastic theorists are liable to be in- 
volved, by the ignis fatuus of their visionary views. Can 
there be found a man, in the wide extent of the United 
States, to believe that sir Joshua Gee, Josiah Child, The- 
odore Janssen, Charles King, Thomas Willing, Robert 
Morris, George Clymer, Thomas Fitzsimons, Governeur 
and Kemble, and the thousands of other merchants, of 
equal mind, who have flourished in Great Britain and this 
country, were ignorant " in what manner foreign commerce 
enriched a country^""' without the aid of the Wealth of 
Nations? It is impossible. Take any man of sound 
mind, who has followed the plough, or driven the shuttle, 
or made shoes all bis life, and clearly state the operations 
of trade to him, and he will rationally account for the 
" manner in which foreign trade enriches a country ** In- 
deed a merchant's apprentice of six months standing, 
could not mistake " the manner J^ Any one of them would 
at once pronounce, that foreign trade enriches a country, 
exactly as farmers, planters, or manufacturers are enrich- 
ed; that is, by the very simple process of selling more than 
they buy. No nation ever was, none will ever be enrich- 
ed in any other way. And it is unaccountable that Dr. 
Smith should have supposed that it was reserved for him 
to make the grand discovery. The principle was well 

^ Wealth of Nations, I. 303. 



35 British Policy, 

understood by the merchants of Tyre, 3000 years before 
Adam Smith was born. And if Spain be one of the most 
forlorn and wretched comitries in Europe, it has not arisen 
from ignorance of the true principles of political econo- 
my, but from neglecting them, as well as the counsels of 
her wisest statesmen. Ustariz, who flourished about a 
hundred years since, in that ill-fated and impoverished 
country, has ably developed the grand principles of that 
noble science, in a system as far superior to Dr. Smith's 
as the constitution of the United States is superior to the 
form of government of Spain. 



NO. IIL 

Philadelfihia^ Afiril 12, 1819. 
We proceed to take a view of that fiortion of the sys- 
tem of political economy fiursued in England^ nvhich re^ 
garda the protection of her manufacturing industry^ and 
which has elevated that country to a degree of wealth, 
power, and influence, far beyond what her population or 
natural resources would entitle her to. This part of her 
system displays profound policy and wisdom, and may 
with safety be taken as a pattern by other nations, with 
such variations as particular circumstances may require. 
We do not pretend that it is altogether perfect; nothing 
human ever deserved this character. But that it has more 
excellence than, and as little imperfection as, that of any 
other nation in ancient or modern times, can hardly be 
questioned. The nearer any nation approximates to its 
leading principles, the more certain its career to prospe- 
rity. Indeed, it is not hazarding much to aver, that no 
nation ever did or ever will arrive at the degree of power, 
or influence, or happiness, of which it is susceptible, with- 
out adopting a large portion of her plan of protecting the 
industry of her subjects. There are parts of it, however, 
which are " more honoured in the breach than the observ- 
ance:" we mean those particularly that restrain personal 
liberty, in preventing the emigration of artists and me- 
chanics. 



British Policy. a3 

The grand and leading object of this system, into which 
all its subordinate regulations resolve themselves, is to 
encourage domestic industry, and to check and restrain 
whatever may injure it. This pervades the whole politi- 
cal economy of the nation; and as industry has ever been, 
and, accordinp; to the fixed laws of nature, must eternally 
be, a great security to virtue and happiness, this is among 
the primary duties of every legislative body: and their ne- 
glect of or attention to, this duty, affords an unerring cri- 
terion of their merits or demerits To enable her to effect 
this object. Great Britain is unwearied in her efforts^ — 

I. To facilitate the importation of raw materials, for the 
employment of her artisans and manufacturers; 

II. To discourage, or wholly prohibit, the exportation 
of raw materials; 

III. To export her manufactures in the most finished 
form possible; 

IV. To secure her own manufacturers from the ruin- 
ous effects of foreign rivalship; 

V. To prohibit the emigration of artists and mechanics, 
and the exportation of machinery. 

To accomplish these purposes, she has steadily employ- 
ed the powerful means of — 

1. Bounties on, or encouragement to, the establishment 
of new manufactures; 

2. Absolute prohibitions, or such heavy duties as nearly 
amount to prohibition on the importation, of such articles 
as interfere with her own manufactures; 

3. Drawbacks, on exportation, of the whole or chief 
part of the duties paid on importation. 

All great undertakings, such as the establishment of 
extensive manufactures, require heavy disbursements pre- 
vious to their commencing operations; and in their inci- 
pient state are attended with great difficulty, in conse- 
quence of which they too frequently fail of success in all 
countries, and involve the undertakers in ruin. While 
they are in this perilous situation, the aid of government 
is necessary, and wisdom commands to afford it. Small 
temporary sacrifices are abundantly compensated, by im- 
mense permanent national advantages. We shall furnish 
noble instances of this kind, on a large and liberal scale, 
worthy of a great nation, when we enter on the discussion 
of the policy of Prussia. 



34 British Prohibitions, 

It was by these means that the woollen manufacture 
was first established m England. Edward III. a most 
sagacious prince, held out great inducements to the manu- 
facturers in that branch to remove from Flanders to Eng- 
land. " Very great privileges were granted^ and fiensions 
were allowed to them from the crown^ till they should be 
able to gain a comfortable livelihood by their ingenuity and 
industry,^'* 

Further to favour and foster this infant manufacture, the 
exportation of wool, and the importation of foreign cloth 
were prohibited. t 

Such was the degree of care and attention undeviating- 
ly bestowed on it, that " in the short and turbulent reign 
of Henry IV." who reigned but fourteen years, and was 
almost constantly at war, ^' there were no fewer than twelve 
acts of parliament made for the regulation and encourage- 
ment of that manufacture; for preventing the exportation 
of wool and importation of cloth; and for guarding against 
frauds in the fabrication of it at home.'*:f 

It is obvious that the continuance of bounties beyond 
the infancy of manufactures, would be oppressive to a na- 
tion, and waste its treasures. And therefore as soon as 
they are fully established, the English government usually 
adopts a cheaper and equally effectual mode of fostering 
them, by the prohibition of the rival articles, or by the 
imposition of such heavy duties as nearly amount to pro- 
hibition, and thus securing to its own subjects the whole 
or principal part of the domestic market. 

In the year 1463, under Edward IV. the wisdom and 
policy of fostering domestic industry having become ge- 
nerally understood, the prohibition of importation, which 
had previously been confined chiefly to woollens, was ex- 
tended to a very great variety of articles, viz: 



Woollen caps 


Andirons 


Buskins 


Woollen cloths 


Gridirons 


Shoes 


Laces 


Locks 


Galoches 


Rings of copper. 


Dice 


Combs 


or, latten gilt, 


Tennice-balls 


Pattens 


Chaffing dishes 


Points 


Pack-needles 



* Mortimer's Elements of Commerce, p. 16. 
f Anderson's History of Commerce, I. 401. 
X Henry's History of Great Britain^ X. 187. 



British Prohibitions » 



35 



Crosses 


Purses 


Painted ware 


Ribands 


Globes 


Forcers 


Fringes of Silk 


Girdles 


Caskets 


Ditto of thread 


Harness for gir- 


Chaffing balls 


Laces of thread 


dles, of iron, lat- 


Hanging candle- 


Silk-twined 


ten, steel, tin, or 


sticks 


Silk in anywise 


alkemine 


Rings for curtains 


embroidered 


Anythingwrought 


Ladles 


Laces of gold 


of tanned lea- 


Scummers 


Ditto of Silk and 


ther 


Sacring-bells 


gold 


Any tanned furs 


Counterfeit basins 


Saddles 


Corks 


Ewers 


Stirrups 


Knives 


Hat brushes 


All harness per- 


Daggers 


Wool -cards 


taining to saddles 


Sword blades 


White wire 


Spurs 


Bodkins 


If detected in the 


Bosses for bridles 


Shears 


importation, they 


Hammers 


Scissors 


were to be forfeit- 


Pincers 


Razors 


ed, one half to the 


Fire tongs 


Chessmen 


king, and the otheE 


Dripping-pans 


Playing cards 


to the informer.* 


Under Charles ] 


[I. the prohibition was extended to 


Wool-cards 


Cut-work 


Button or needle 


Card-wire 


Embroidery 


workt 


Iron- wire 


Fringe 




Bone-lace 


Buttons 




The list of articles at present prohibited to be imported 


into Great Britain, 


is not quite so extensive as that of Ed- 


ward IV. They are as follow: — 




Brocades 


Fringe 


Laces 


Calicoes 


Girdles 


Needle wojrk 


Chocolate and co- 


Silk or leather 


Plate 


coa paste 


mits and gloves 


Ribands 


Cocoa nut shells 


Manufactures of 


Laces 


or husks 


gold, silver, or 


Shapes for gloves 


Embroidery 


metal 


or mits 


Silk 


Tobacco stalks & 


Wiret. 


Silk stockings 


snuff work 




Thread 


Velvet 





* Anderson's History of Commerce, I. 636. 
t Postlethwaite's Dictionary of Commerce, I. 975. 
f Pope's Practical Abridgment of the Laws of Customs 
Excise. Title 284. 



ana 



36 



Extracts from British Tariffs 0/I8I8. 



The penalties for the importation of some of those arti- 
cles are very severe. For example, besides the confis- 
cation of the goods, there is a forfeiture of two hundred 
pounds sterling for every offence in the case of leather 
gloves. 

The most general mode, however, of encouraging do- 
mestic industry in Great Britain, at present, is by the im- 
position of such heavy duties, as in most cases amount to 
prohibition; or if the rival articles will still admit of im- 
portation, they cannot, from the necessary advance of price, 
materially affect the native manufacturer. We annex a 
list of some of the articles, with the amount of the duties 
imposed on them. 

Extracts from the British Tariff of 1818. 

Articles subject to duty of 59/. 7s, 6<i. per 100/. value 



Baskets 

Musical instruments 

Nuts 

Oil of pine 

Oils not particularly 
enumerated 

Paintings on glass 

Pencils 

Pieces of skins and 
, furs 

Spouts of wood 

Staiuesj except of mar- 
ble or stone 

Steel not otherwise 
enumerated 

Ticking 

Ticks 

Tin-foil 

Tooth-powder 

Toys 

Tuoes for smoking 

Tubs 

Watches 



To 



Chalk 

Copper in pigs 
Hoofs of cattle 
Horns 
SiiU laces 
Pig lead 



Almond paste 

Dressing-boxes 

Snuff-boxes 

Manufactures of brass 

Pens 

Pomatum 

Stone pots 

Coloured paper and 

prints 
Sago powder 
Scratch brushes 
Seeds not particularly 

enumerated 
Silk-worm guts 
Skates 

Skins and furs 
Walking sticks 
Thread or worsted 

stockings 
FiHtering stones 
Open tapes 
Worsted tapes 
Tapestry, not of silk 
31/. 13.y. 4fif. per. 
Cast iron 
Minerals not otherwise 

enumerated 
Polishing rushes 
Ships with their tac- 



Telescopes 

Thread, not otherwise 
enumerated 

Turnery, not otherwise 
enumerated 

Vases, except of stone 
or marble 

Wicker- ware 

Silver, gilt, or plated 
wire 

Worsted yarn 

Goods of all kinds, in 
part or wholly ma- 
nufactured 

Bronze figures 

Worsted caps 

Carpets 

Carriages 

Clocks 

Manufactures of cop- 
per 

Copperplates engra- 
ved, &c. &c. 
100/. 

Lime-stone 

Polishing stones 

Rag stones 

Taimers' waste 

Tare 

Touch stone 



kle 

To 79/. 35, 4f/. per 100/. 
China ware Earthen ware Shawls Tobacco pipes 

To 63/. 65. St/, per 100/. 
Linen, not being chequered or striped Gause of thread 



Extracts from British tariff. 37 

To 85/. 105. per 100/. 
Cotton stockings - Cotton caps Cotton thread Linen sails. 

To 1 1 4/. per : 00/. 
Glass bottles, rough plate glass, German sheet glass, glass manufaccures. 

To 142/. 10.V. per 100/. 

Leather fan mounts Skins or furs, tanned, Articles whereof leather 

Linens chequered or tawed, curried, or is the most valuable part 

striped, painted, or any way dressed Hides, or pieces of hsdes, 

stained Articles made of leather tanned, tawed, or in 

any way dressed. 

An idea has been lon^ entertained, by many well mean- 
ing people, that to secure the home market to our own 
manutacturers, operates merely to enable them to prey- 
on and oppress their fellow-citizens, by extoriing extra- 
vagant and exorbitant prices for their productions. And 
hence many of our planters and farmers in congress have 
uniformly opposed duties for the mere purpose of pro- 
tecting manufactures. There are some who nave openly 
avowed, that their sole view in laying impost duties, is to 
provide a revenue for the expenses of the government. 
And a writer of considerable celebrity, John Taylor, esq. 
of Caroline county, Virginia, has devoted a number of 
chapters of his Arator, to prove that every dollar given 
by a nation as bounty, or imposed as duty, to protect do- 
mestic manufactures, is a dollar robbed from the pockets 
of the farmers and planters! 

It is a trite but indisputable truth, that one solid, well- 
established fact, bearing upon any particular point, will 
countervail a long train of arguments, however plausible, 
which militate against that fact. Behold a case, which 
must operate to open the eyes of every man accessible to 
conviction. There is probably no couiUry in the world, 
where the system of heavy prohibitory duties is carried 
farther than in England: and yet, notwithstanding this cir- 
cumstance, and the enormous burden of taxation which 
she sustains, as well as the boundless extent of her paper 
money, which must enhance the expenses of living, she is 
able to meet in their own markets, and undersell, a large 
portion of the manufacturers of all the other nations of 
Christendom. This fact sets the quesuon at rest forever; 
and establishes, on the firmest basis, the luminous maxim 
of Alexander Hamilton, a maxim that ought to be written 
in letters of e:oU], and affixed in a conspicuous place in 
the hall of congress, that powerful body, on whose wisdom 

D 



2B Luminous Maxim, 

or errors depends the prosperity or decay of a mighty 
empire: — 

" Though it were true^ that the imniediate and certain 
effect of regulations controlling the comfietition of foreign 
with domestic fabrics was an increase of price ^ it is uniuer^ 
sally true^ that the contrary is the ultimate effect 
WITH EVERY SUCCESSFUL MANUFACTURE. When a do- 
mestic manufacture has attained to fierfection^ and has 
engaged in the prosecution of it a competent number of 
persons^ it invariably becomes cheaper. Being free 
from the heavy charges which attend the importation of 
foreign commodities^ it can be afforded cheaper^ a?id ac' 
eordingly seldom or never fails to be sold cheaper^ in pro- 
cess of time^than was the foreign article for which it is a 
substitute. The internal competition which takes place^ 
soon does away every thing like monopoly; and by degress 
reduces the price of the article to the minimum of 
A reasonable profit on the capital employed. This 
accords with the reason of the things and with expert" 
ence,''^* 

The true tests of the excellence or folly of any system, 
are its results, when carried fully into operation. These 
confirm sound theories, however unpopular they may ap- 
pear on a superficial view; and set the seal of reprobation 
on pernicious ones, how plausible soever an aspect they 
wear on paper. 

By this touchstone, let us judge the political economy 
of England, respecting national industry; and, on a fair ex- 
amination, we shall unhesitatingly bt stow the most unquali- 
fied plaudit on her parliament, for the admirable and in- 
comparable system it has devised. We may fairly assert, 
without the least danger of contradiction, that there never 
existed a legislative body which bestowed more attention 
on the solid, substantial, and vital interests of its constitu- 
ents, so far as respects national industry in all its various 
forms. 

We might extend the consideration of the wonderful ex- 
cellence, and immense advantages of tlie policy of Great 
Britain respecting manufactures, trade, and commerce, to 
volumes. The subject appears inexhaustibic. But our 
limits forbid much detail, and constrain us to confine our- 
selves to two points: — 

* Hamilton's work, I. 212. 



Gains by British Manufactures, 59 

I. The immense wealth she acquires by this system; and 
II. The astonishing increase of power it has secured her. 



I. We shall, on the first point, confine ourselves to the 
four great manufactures, linen, cotton, woollen, and leather, 
and make no doubt, the statement will astonish our fellow- 
citizens, and remove all doubt of the correctness of the 
eulogiums we have hazarded on the British political eco- 
nomy. 

According to Colquhoun*, the annual proceeds of the cot- 
ton manufacture are - - 29,000,000/. 
The woollen - - - - 26,000,000 
The linen ... - 15,000,000 
The leather ... - 15,000,000 

Total 85,000,000/. 

Whereas the raw materials of the cotton 

cost . - 6,000,000/. 

The woollen - - 8,000,000 

The linen - - 5,000,000 

The leather - - 3,000,000 

— 22,000,000/. 



Balance 63,000,000/. 

Thus a gain is secured to the nation of 63,000,000 of 
pounds sterling, or above 270,000,000 of dollars annually. 
This at once solves the mystery of the wonderful " fioiver 
and resources'' of Great Britain, and establishes beyond 
controversy the wisdom of its policy, which is, in every 
respect, let us observe, the antipodes of the doctrines of 
Adam Smith in the Wealth of Nations. 

What stupendous facts! What a lesson to the legislators 
of other countries, particularly the United StatesI We 
possess the capacity of raising the raw material of the cot- 
ton manufacture, the chief of the four kinds above stated, 
to an extent commensurate with the demand of the whole 
world; and we could, with ease, if proper encouragement 
were offered, produce the materials of the other three, in 
sufficient quantity for all our purposes. 

* Treatise on the wealth, power, and resources of the British 
Empire, p. 91. 



40 Immense resources of Great Britain, 

II. The second point, to which we wish to turn the at- 
tention of our fellow-citizens, in order to establish the 
soundness of the system of political economy, resfiecting 
her manufactures^ pursued in England, is the wonderful 
increase of power it has secured her. 

For twenty years she was the main support of a war of 
unexampled expenditure, against the most gigantic com- 
bination of power, and the most formidable monarch, that 
Europe has beheld for a thousand years. From her re- 
sources alone it arose, that he did not arrive at universal 
empire. Slie not only preserved herself from the loss of 
lier own possessions, but conquered colonies and depen- 
dencies of her enemies, of great extent and immense value. 
Her revenue for the year 1812, was about 63 500,OuO/.*2 
^nd in the same year her expenditure was above 1 12,00U,- 
OOO.t 

During the whole of this war, she was not obliged to 
borrow money from any other nation; but made large loans 
to several. She subsidized some of the first-rate monarchs 
in Europe. 

Her enormous debt, which, according to Colquhoun, 
amounted at the close of 1813 to above 900,000,000/4 is 
wholly owned by her own subjects, except about I75OOO,- 
000/. purchased and owned by foreigners. 

It is no impeachment to the merits of her system, that 
her paupers amount to above 1,500,000, and her poor 
tax to 6,000,000/. sterling, equal to 26,000,000 oi dollars.§ 
This lamentable feature in her affairs, arises partly for 
the labours of the working class being superseded by ma- 
chinery, and partly from the wasteful and ruinous wars 
she has maintained, which alone have prevented the coun- 
try from being an earthly paradise. 

Since our recent war, she has been enabled to lay this 
country under hea^y contribution, so that there is an enor- 
inous debt due her, notwithstanding she has possessed her- 
self of a very large portion of our bank and other public 
stocks, in payment for her manufactures, which \\i\\ yield 
her a great and permanent income, at the expense of the 
United States. 

* ColquhouQ on the wealth, power, and resources of the Britisb 
l':mpire, p.^58, f Idem, 261. 

X Page 273. He states, however, in this page, that 236,000,000/. 
of tliis debt have been redeemed. ^ Idem, 125. 



Tariffs comjiared. 



41 



To her support of domestic industry alone, she chiefly 
owes these capacities and advantages, and the inordinate 
power she possesses. Were she to abandon her system, 
and adopt that of Adam Smith, she could not fail, in a few 
years, to be reduced to a level with Spain and Portugal. 
All her treasures would be drawn away to the East-Indies, 
France, Germany, &c. 

We shall close with a comparison between her policy 
and that of the United States, on a few plain and simple 
points: 



GREAT BRITAIN 

Prohibits the importation of cali- 
coes, silks, threads, ribands, velvets, 
&c. even from her own dependen- 
cies. (See page 32.) 

She imposes a duty of 85 per 
cent, ad valorem on various articles 
of cotton, the productions of those 
dependencies. 



She imposes a duty of 79 per cent, 
ad valorem on earthenware. 



She imposes a duty of 142 1-2 
per cent, on leather manufac- 
tures. 



THE UNITED STATES 

Prohibit no manufactured arti- 
cles whatever, however great the 
capacity of our citizens to supply 
them. 

They admit all cotton fabrics, of 
every denomination, from Great 
Britain and her dependencies, and 
any other part of the globe, at 27 
1-2 per cent, (except those below 
25 cents per square yard, which are 
dutied as at 25 cents.) 

Although they could supply them- 
selves superabundantly with earth- 
enware, they admit it at 22 pei" 
cent! 

They admit leather manufactures 
at 33 per cent. 



COMPARISON CONTINUED. 



BRITISH DUTIES. 

Woollen cloths, per yard, 34s. 
sterling, equal to about 7 dolls. 50 
cts. 

Hats, per piece, 34s. or 7 dolls. 
50cts. 

Glass bottles, 114 per cent. 

Linens, not chequered or striped, 
63 per cent. 

Linens, chequered or striped 142 
per cent. 



UNITED STATES' DUTIES. 

27 1-2 per cent, ad valorem. 

33 per cent. 

22 per cent. 
16 1-2 per cent. 

16 1-2 per cent. 



The annals of legislation and revenue cannot produce a 
stronger contrast between the most profound policy and 
its direct opposite. 

Thus we see that Great Britain, possessing machinery 
which increases her powers of manufacturing at the rate 

D 2 



42 Advantages of British Policy. 

of two hundred for one, does not rely on it for the protec- 
tion of her donaestic industry; but interposes the powerful 
shield of prohibition and enormous duties, to preserve 
them from danger; while the United States, which had, at 
the close of the war, a great number of important and ex- 
tensive manufacturing establishments, and invaluable ma- 
chinery, erected and advantageously employed during its 
continuance, ai«d although blessed by a bounteous heaven 
'with a boundless capacity for such establishments, have, 
for want of adequate protection, suffered a large portion 
of them to go to decay, and their proprietors to be invol- 
ved in ruin, the helpless victims of a misplaced reliance 
on that protection! 

The comparison might be pursued to a very great ex- 
tent: but we trust there is enough stated to enable our 
fellow-citizens to account for the prostrate situation of our 
affairs. No two nations ever carried on intercouse on 
terms more entirely destitute of reciprocity: and hence 
our citizenson the banks of the Missouri are clothed with 
fabrics manufactured in England and Hindostan, while 
thousTinds of useful men, women, and children, capable of 
furnishing superior goods, at equal prices, are literally pin- 
ing in wretchedness, in our towns and cities, for want of 
employment, and many of them driven to mendicity, to 
support a miserable existence! and while our country is im- 
poverished, to support the manufacturers of the East In- 
dies and every part of Europe. And why (let us solemnly 
ask) does this lamentable state of hings exist? Because, 
in tne lnnv>;uage of Adam Smith, ^^ foreign countries can 
furnish us luith commodities cheafier than we ourselves 
can make them;^^ and we have thought it " better to buy 
from them^ with some f tart of the produce of our own in^ 
dusirijl" 

Every prudent merchant, farmer, or planter, commen- 
cing bis career of business, will naturally inquire into the 
plans acted on by those engaged in similar pursuits, before 
he determines or. his own. Those dictated by wisdom, 
tested by long experience, and attended with success, he 
will study as guides by which to regulate his conduct. 
Those emanating from folly, sinister views, or empiri- 
cism, he will regard as beacons to warn him to beware. 

This conduct, indisputably wise in private life, is impe- 
riously the duty of those on whom rests the high responsi- 
bility of regulating the career of nations, particularly in 



Russian Policy, 43 

their infancy or youth. This is a duty which no enlight- 
ened or honest legislature will ever neglect. 

We trust therefore, that a calm and candid observation 
of the fatal consequences of adopting the doctrines of 
Adam Smith, as well as of the transcendent benefits, pub- 
lic and private, resulting from the English system, which 
is in undeviating hostility with that of the doctor, will 
serve to display the true policy which this country ought 
to pursue, in order to fill the high destiny which appears 
allotted to her in the course of human events; and induce 
the legislature of the Union, to devote that attention to 
the protection of domestic industry, without whi( h the 
United States can never hope to be really independent, or 
to enjoy that degree of prosperiry and happiness which 
God and Nature have placed within their grasp; and 
which cannot be neglected without a most culpable de- 
reliction of our duty to ourselves, and to our posterity, on 
whom the folly or wisdom of our councils will operate 
when we are consigned to the peaceful grave. 



NO. IV. 

Philadelphia^ ^firil 26y 1819. 
We have presented to your view, fellow-citizens, a cur- 
sory sketch of the admirable and beneficent policy of 
Great Britain* on the all-important and vital point of fos- 
tering and protecting domestic industry — a policy, we re- 
peat, and wish steadily borne in mind, in direct hostility 
with the doctrines of Adam Smith, which rank among 
their supporters so large a portion of our citizens. 

* Objections have been made to our statement of the prosperity 
of England resulting from her protection of domestic industry, 
grounded on the oppression she exercises on, and the abject state 
of, some of her dependencies. This does not in the least militate 
with our view, which went to prove, from indisputable facts, that 
the protection of domestic industry in the island of Greot Britain, 
had there produced as great a mass of wealth and prosperity as 
had ever existed. Her wars, which greatly impair that pros- 
perity, and her treatment of her dependencies, have not the most 
remote connection with our theory. 



44 Russian Policy. 

We now request your attention to the policy of a 
mighty empire, whose situation bears considerable analo- 
gy to that of this country. 

Russia, like the United States, possesses territories of 
most immoderate extent, which are very slenderly peo- 
pled. The cultivation of her vacant lands, according to 
the captivating and plausible theories of many of our ci- 
tizens, might find employment for all her inhabitants. And 
as other nations, if " the freedom of trade were restored^ 
could furnish her with commodities cheaper than she could 
manufacture them^^ she ought, according to Adam Smith, 
to open her ports to the merchandize of all the world. 

But, low as we fastidiously and unjustly rate her policy, 
she has too much good sense to adopt a maxim so perni- 
cious in its results, although so plausible in its appearance. 
And let us add, its plausibihty is only in appearance. It 
vanishes on even a cursory examination. 

Russia fulfils the indispensible duty of fostering and 
protecting domestic industry, and guarding it against the 
destructive consequences of overwhelming foreign com- 
petition. This is the great platform of her political sys- 
tem, as it ought to be of ail political systems; and it is 
painful to state, that so far as respects this cardinal point, 
she is at least a century in advance of the United States. 
She is not satisfied with the imposition of heavy duties for 
the purpose of raising a revenue, which, with too many 
statesmen, appears to be chief, if not the only object wor- 
thy of consideration in the formation of a tariff. No. She 
prohibits, under penalty of confiscation, nearly all the ar- 
ticles with which her own subjects can supply her, unaf- 
fected by the terrors, so powerfully felt in this country, 
of giving a monopoly of the home market to her own 
people — terrors which have probably cost the United 
States one hundred millions of dollars since the war — ter- 
rors which the profound and sage maxim of Alexander 
Hamilton, quoted in our last number, ought to have 
laid in the grave of oblivion nearly thirty years ago, never 
to raise again to impair the prosperity of the nation, or 
the happiness of its citizens. 

The annexed list deserves the most pointed attention, 
and cannot fail to surprise the citizens of a cpuntry, where 
unfortunately nothing is prohibited, how i^reai so ve the 
domestic supply, and where there are hardly any duties 



Russian Prohibitions. 



45 



deserving the name of prohibitory, and few affording ade- 
quate protection. 

List of Goods the Importation of which is prohibited into 
the Russian £m/iire.'^ 



Alabaster. 

Ale. 

Brcnze, gilt or ungilt, Statues, 

Busts, Vases, Urns, Girandoles, 

Lustres, Candelabras, &c. 
Beads of all kinds. 
Blacking for Boots and Shoes. 
Brandy, distilled from grain of 

every kind 
Brandy, poured on Cherries, Pears, 

or other fruits. 
Brooms, of twigs or rushes for 

cleaning clothes. 
Bolts of Metal, of every kind for 

fastening doors, &c. 
Books, Counting House books in 

Blank. 
Buttons of all kinds. 
Baskets of straw or twigs. 
Butter of Cows or Sheep. 
Besoms, brushes of all kinds. 
Bellows, for fire places. 
Blankets, or Bed-covers, of Cotton, 

Linen, or Wool, with embroi- 
dery, or woven with Silver or 

Gold; also of Silk, or half Silk, 

without exception. 
Boxes, Sand and Spitting Boxes. 
Bedding of all kinds, excepting those 

of Passengers. 
Balls of Lead. 
Beer of all kinds, except English 

Porter. 
Boots of all kinds. 
Baizes of all sorts. 
Cotton Goods, wrought of Cotton 

intermixed with Gold and Silver; 

also Dyed, Printed or Chintz, 
Candles. 
Chess-boards, and other boards for 

Games, with their appendages. 
Carpets, interwoven with Gold or 

silver. 
Cranes of all kinds. 
Confectionary of all kinds. 
Cnngles. 
Coffee-mills. 



Coin, base Coin, or being of a less 
value thani ts denomination. Rus- 
sian Bank Notes. 

Combs, of Horn. 

Copper utensils of every kind. 

Copper articles, whether hammered 
or cast, &c. ornamented with de- 
signs, gilt or ungilt of every kind; 
also handles, plates, and such 
like ai'ticles: the same applies to 
Brass. 

Clothes of all kinds, except those of 
Passengers. 

Canary Seed. 

Crystal, or Cut Glass-ware of all 
kinds. 

Cases of all kinds. 

Cords of Silk, Cotton, CamePB 
Hair, or Worsted. 

Cloth, fine Black Cloth, and all 
Coarse Cloths and Baizes. 

Cicory, ground in imitation of Cof- 
fee. 

Crystal Drops, for Lustres and Gi- 
randoles. 

Chocolate. 

Clocks, for Tables or Walls, with 
metal or glass ornaments of any 
kind. 

Clocks or Watches in enamel with 
striped edges. 

Caps of all kinds. 

Carriages of all kinds, except those 
belonging to Travellers. 

Doors for Stoves of all kinds. 

Down of all kinds, except those 
specified as admitted. 

Dried Fruits. 

Embroidery of Gold of every de- 
scription of material 

Earthenware vessels, or utensils of 
common clay, Delft, Fayance or 
China, Porcelain and the like, 
with Gold, Silver, or Painted 
Borders. 

Fringes of all kinds. 

Fans. 



' Rordansz^ on Eii/ropean Commerce, page 54 . 



46 



Russian Prohibitions. 



Feathers. 

Flesh of all kinds, dried, salted or 
smoked. 

Fruits, preserved, wet or dried in 
sugar. 

Garden Fruits of all sorts, salted in 
vinegar, fresh or dried. 

Fumigating Powder. 

Frames for Wmdows. 

Frames for Pictures, except belong- 
ing to Pictures or Engravings im- 
ported. 

Flax for Wicks. 

Fishing Tackles. 

Gallantly VVai-e, including all sorts 
of high priced trifles, ornament- 
ed or unornamented, with high 
priced Stones and Pearls, except 
those otherwise specified. 

Galloon. 

Grold and Silver, or Gilt Plate, or 
Vessels of all kinds. 

Glue, made of Fish or Leather. 

Gold and Silver Lace, Edgines, 
Tassels, Cords, Nets, Gauze, &c. 

Gloves, of Woollen, Cotton or Lin- 
en. 

Gartei-s. 

Guu-Powdcr. 

Glass Drops for Lustres, Giran- 
doles, all Glass-Ware and uten- 
sils of every kind, Glass Giran- 
doles, Lustres, &c. Window 
Glass in circles. 

Gaiters, of Leather. 

Gingerbread. 

Gin or Geneva. 

Gricus, (a kind of common Mush- 
room, or Fungus.) 

Hair, human hair. 

Hair Powder. 

Horn Combs, Horns of Elk, Rein- 
deer and other sorts unwrought, 
except such as are imported in 
Russian ships, having been taken 
by Russian huntsmen. 

Hilts, for swords, sabres, daggers, 
&c 

Hai-psichords or Piano Fortes, with 
Bronze ornaments on the bodies, 
except such as are applied to 
strengthen them, or upon the 
legs, or as locks. 

Hides, prepared, and every article 
made of leather, except those spe- 
cified as admitted. 



Hats of all kinds. 

Hai'uess and such like for horses. 

Honey, in the comb and prepared. 

Handkerchiefs printed on linen 
cloth, silk of every kind, with a 
border woven or printed. 

Hangings of tapestry, or paper, or 
cloth, paper and wool together, 
woven, painted linen, or woollen, 
and all other kinds. 

Iron, cast, in guns, shot, plates 
thick or tbinj^ kettles, and other 
casts Iron work. 

Iron wrought into bars, double, or 
single for plates. 

Iron, Pig Iron unwrought or wrought 
in pieces, wire utensils of every 
kind, blacksmith's work small 
ware, every sort of locksmith's 
and white smith's work, except 
those specified elsewhere as per- 
mitted. 

Iron Anchors. 

Ink, of all sorts in bottles or pow- 
ders, also Indian Ink (Printers' 
Ink, duty free.) 

Ink-stauds of all kinds. 

Jewellery. 

Isinglass, offish (glue.) 

Kingees, or fur shoes and boots of 
every kmd. 

Linen, as shirts. Sec. of all kinds, 
except passengers' baggage. 

Linen manufactures of all kinds 
except Cambric. 

Locks of all kinds. 

Lime, slaked or unslaked. 

Lace. 

Liqueui-s, of Brandy. 

Lustres of all sorts. 

Lanterns. 

Lines, coarse, twisted, such as arc 
used in fishing nets and the like. 

Leather, see hides. 

Ladies' ornaments of all kinds. 

Looking Glasses, see mirrors. 

Mustard, dry or prepared in glasses, 
or jars. 

Mead. 

Mirrors, or glasses intended for 
them. 

Macaroni. 

Muslin, or Muslin Handkerchiefs 
embroidered. 

Mills, for grinding coflee. 

Mufis, of all kinds. 



jRuMsian Prohibitions, 



47 



Marble and Alabaster clocks, table 
slabs, pillars, utensils, and all 
other (ornaments) not specified 
admitted. 
Mats, made of straw to put on ta- 
bles under dishes. 
Mats, straw and rush. 
Mittens, and leather for warm mit- 
tens. 
Marienglass, or Talc. 
Night caps of all kinds, except 

those specified as admitted. 
Nails, of copper and brass, or with 
copper and brass heads, or wash- 
ed, plated, gilt, tinned, or of iron 
and tin. 
Nets of all kinds, and netting. 
Oil, Rape oil. 
Ornaments for ladies. 
Pins and skewers of all kind. 
Paper of all kinds, not specified as 

admitted. 
Plate, gold and silver vessels of 
every description, also gilt plate. 
Parchment. 
Playing Cards. 
Pocket Books of all kinds. 
Pens, Quills, and Feathers. 
Powder, Hair Powder, Pomatum, 
Fumigating Powders, Gun Pow- 
der for guns or cannon. 
Porcelain. 

Pipes for fire Engines. 
Pipes for smoking of all kinds, ex- 
cept of plain Meerschaun 
Pickles, see Fruit or vegetables. 
Quills or Pens. 

Ribands of orders of Knighthood. 
Rum. 

Sausages of all kinds. 
Spirits, extracted from grain, dou- 
ble, or spirit of wine sweetened. 
Shoes of all kinds. 
Sl;ot of lead and balls. 
Sashes of all kinds. 
Soap of all kinds, except Venice, 

Spanish, Turkish and Greek. 
Sticks of all kinds. 
Suspenders of gentlemen, except 

those specified as admitted. 
Saltpetre, rouirh, or refined, ex- 
cept for the use of apothecaries. 
Silver Plate and utensils of every 
kind. ^ 



Silver Wire or thread flattened, 

spangles and foil. 
Slippers of all kinds, except those 

specified as admitted. 
Sugar, fruits in Sugar, dry or wet. 
Sealing Wax. 
Spices of all kinds. 
Saddle Cloths. 
Snufl' Boxes. 
Sword Belts. 

Silk of all kinds, Silk or half Silk 
Goods, except those specified for 
admittance. 
Toys of all sorts. 
Tapes of all kinds. 
Tiles for stoves. 
Tapestry, see hangings. 
Tin, grain Tin, or tin ware of any 

kind. 
Tea of every sort. * 
Tinsel, or foil, flat, woven, red, 
white in lace, lace in liveries, 
galloons, ribands, edgings, or 
bindings, &,c. 
Vermicelli, or Marcaroni. 
Vinegar of all sorts, except wine 

Vinegar. 
Wash Basins, Tea Pots, CoflTee 
Pols, Candlesticks, Waiters, 
Stands, or such like goods wheth- 
er of Copper, red or green, say 
Copper or Brass, Iron, tinned, or 
untinned, varnished, plated, gilt 
or silvered, argent, hache, or 
with silver edges separately ap- 
plied. 
W^hips for coachmen. 
Waddings. 
Wafers. 
Wigs. 

Ware, white, yellow, or coloured. 
Wood, manufactured, except in 
such articles as are required by 
passengers for their baggage. 
Window Frames. 

Wicks for candles of flax or tluead 
Window Glass, in circles. 
Watches. 

Woollen Goods, baizes of all sorts, 
see cloth. 



* Tea is adDiiUed over land from 
China. 



48 , View of Manufactures. 

An appalling^ reflection arises from the view here ^iven 
of the policy of Russia; a reflection which we would wil- 
lini^?y suppress, but which, fellow citizens, justice to the 
subject forces us to present to your minds. We are im- 
periously led to off r it f ro n a conviction that to induce 
a patient to submi- to medicine or rej^imen, it is necessary 
he should be convinced of the e ast^ince of his disease. 
And in the present disordered state of our manuf^iclures, 
trade, and commerce, it is absolutely necessary to "hold 
the mirror up to nature," and "nought extenuate, nor 
aught set down in malice." 

The United States, as is admitted by writers of various 
nations, enjoy the best form of government in the world. 
It would therefore be natural to presume, that with such 
a government, and with a representation probably as free- 
ly and fairly chosen, as any legislative body in any age or 
country, the interests of its various descriptions of citizens 
would be more scrupulously guarded than those of any 
other nation. Yet we have before us the most cogent 
proof of the extreme fallacy of such a presumption, so 
far as regards the large and important class of citizens 
engaged in manufactures, on whose success and prospe- 
rity so much of the strength and resources of nations de- 
pends. This description of citizens* must look with en- 

* It is too common, we apprehend, for many of the farmers and plan- 
ters of the southern states, to regard with disesteem, or, in common par- 
lance, to look down on manufacturers as beneath them in point of respecta- 
bility To this source may probably be ascribed the inflexible refusal of 
that protection which was so earnestly solicited for the manufacturing in- 
terest throughout the union It is haHly possible to conceive of a greater 
absurdity. We touch this delicate subject freely. We, however, mean 
no offence, and hope none will be taken Our object, we trust, will be 
regarded by liberal-minded men as not only innocent, but laudable. !t is 
to correct a deep rooted and pernicious prejudice, which tends to produce 
jealousy and alienation between the different members of one family, who 
ought to cher'sh for each other kindly sentiments of regard and good will, 
and who are so closely connected in point of interest, that it is impossible 
for one to suffer heavily, without the others being deeply affected. We 
freely ask, and requost a candid rrply, can there, in the eye of reason and 
common sense, he found, on the most impartial scrutiny, any superiority 
in a South Carolina or Virginia planJer, surrounded by five hundred slaves, 
over a proprietor of one of the extensive factories in Rhode Island, in 
which an equal number of free, independent, and happy workmen, with 
their wives and children, are employed? As our object is concilia- 
tion, we forbear to assert any superior! tv on the other side. But in order 
to afford a fiir opportunity of decii^infi; this important question, of the me- 
rits, detnerits and usefulness of the different descriptions of citizens, we 
state some important facts which bear forcibly on this subject. In the year 



View of Manufacture a. 49 

vy at the paternal and fostering care bestoived on persons 
of the same class by the emperor of Russia, one of the 
most despotic monarchs of Christendom. The contrast 
is decisive. It reflects honour on the proftiund wisdom 
and sound policy of that prince — and, fellow citizens, 
cannot fail to excite painful sensations in your minds, to 
reflect how the United States lose on the comparison. 

It could never have entered into the mind of Hancock, 
Adams, Franklin, Washington, or any other of those illus- 
trious men, who in the field or cabinet achieved the inde- 
pendence of this country, that before the lapse of half a 
centucy, American citizens should be forced to make 
invidious comparisons between their own situation and 
that of the subjects of a despotic empire; and that ihe 
protection denied to their industry is liberally afforded to 
that of the subjects of Russia. 

In order to render this extraordinary fact more striking, 
we shall, fellow citizens, compare the situation of a sub- 
ject of Russia and a citizen of the United States, engaged, 
for instance, in the cotton manufacture. 

1815, there were, as stated in a memorial lo Congress of the cotton ma- 
nufacturers of the town of Providence, within thirty miles of that town,* 
Cotton manufactories - - - ----140 

Containing in actual operation, - - spindles 130,000 

Using annually, - - - - bales of cotton 29,000 

Producing yards of the kinds of cotton goods 

usually made ----- 27,840,000 

The weaving of which at eight cents per yard 

amounts to §2,227,200 

Total value of the cloth ----- |6,000.000 

Persons steadily employed - - - - . - 26,000 
We may demand, whether throughout the world, there is to be found 
any equal space devoted wholly to agriculture, which furnishes employ- 
ment to one-fourth part of the number of individuals, or produces one- 
fourth of the amount of wealth or happiness? 

We trust this brief view will serve to remove the film from the eyes of 
those citizeus who, for want of due consideration, have cherished opinions 
on the subject of manufactures, and manufacturers, so diametrically op- 
posite to fact, and so pregnant with ruinous consequences. 

" Honour or shame from no condition rise, 

" Act well your part: there all the honour lies.'* 

And the manufacturer of cottons, woollens, watches, paper, books, hats 
or shoes, who " acts well his part" has no reason to shrink, and we trust 
he never will shrink, from a comparison with any of his fellow men, whe- 
ther merchants, farmers, planters, or men of overgrown wealth. 

* Weekly Ueg^ister, vol. ix. page 44. 
E 



50 View of Manufactures, 

The former, we will suppose, embarks 850,000 in that 
business. He has no competition to dread but that of his 
fellow subjects. His paternal government closes the 
door against his destruction, by shutting out the interfer- 
ence of any other nation. He has a large and beneficial 
market, and in consequence enriches himself, and adds 
to the wealth, the strength, the power and the resources 
of his country. 

What a chilling and appalling contrast when we regard 
the situation of the American engaged in the same useful 
line of business! When he has expended his capital, es- 
tablished his works, and entertains what he has ground to 
deem a reasonable hope of success, and of that reward to 
which honest industry has so fair a claim, the market, on 
the supply of which he formed all his calculations, is de- 
luged with rival articles, manufactured at a distance of 
thousands of miles, which can be afforded at lower prices 
than his, and which accordingly destroy his chances of 
sale. He casts an imploring eye to his representatives 
for the same kind of relief which England, France, Rus- 
sia, Prussia, Denmark, and Austria, afford their subjects, 
and the refusal of which is a manifest dereliction of duty. 
His representatives, acting on the maxims of Adam 
Smith, and disregarding the admonitoty lessons of those 
mighty nations, meet him with a positive refusal; and he 
sinks a victim of a policy long scouted out of all the wise 
nations of Europe, and which now only lingers in, and 
blights and blasts the happiness of Spain and Portugal. 
Hundreds of useful citizens in every part of the union, 
with large families, mourn the ruinous consequences of 
our mistaken policy. 

The stibject is too important not to warrant u&in cast- 
ing another slight glance at it. 

The United States are peculiarly fitted for the cotton 
manulacture, being, as we have already stated, capable 
of raising the raw material, in quantities commensurate 
with the demand of the whole world. And yet cotton 
goods of every description (except those below twenty- 
live cents per yard, which are dutied as at twenty-five 
cents) are freely admitted at the very inefficient duty of 
twenty-seven and a half per cent, in consequence of which, 
great numbers of the most promising establishments have 
been destroyed. The raw material is transported across 
the Atlantic, 5000 miles, at sixteen to forty-five cents per 



Slighted afiiilications of Manufacturers: 51 

pound, and returned lo us at the rate of from one dollar to 
five dollars — thus fostering the industry and the manufac- 
tures of Europe, and consigning our worknjen to pover- 
ty, and often lo mendicity — their employers to the long 
lists of bankrupts which are daily increasing in our towns 
and cities— and impoverishing the nation. On this sys- 
tem and its consequences we shall descant more at large 
on a future occasion. For the present we shall barely 
state that the policy of England during the dark ages of 
Edward III. and Henry IV. as sketched in our last num- 
ber, was far superior to ours with all our boasted illumi- 
nation. 

At the close of the war, powerful and eloquent memo- 
rials were presented to Congress from the cotton manu- 
facturers of Rhode Island, New York, Baltimore, Philadel- 
phia, Pittsburg, New London, and various other parts 
of the United States, in which they besought the aid of 
government, in the most respectful terms. To narrow 
the range of objection, they bounded their requests gene- 
rally to a prohibition of cotton manufactures, except nan- 
keens from the East Indies, and to such an increase of 
duties on those from other quarters, as would save the 
revenue from injury by the prohibition. The memorials 
were filled with predictions of the ruinous consequences 
that would result from the contrary policy. Their simple 
request, enforced by a most luminous train of reasoning, 
was unhappily rejected: and it is almost demonstrable, 
that to this rejection a large portion of the difficulties 
and embarrassments which at present overspread the face 
of the country may be ascribed. All the gloomy predic- 
tions of the memorials have unfortunately become histo- 
ry. 

A consideration of the rejection of the first prayer of 
the memorials, which respects the prohibition of East In- 
dia cottons, is calculated to excite an equal degree of re- 
gret and astonishment. The East India trade, during the 
continuance of the wars in Europe, when we had markets 
in that quarter and in some of the colonies of the belli- 
gerents, for the surplus of our impprtations from beyond 
the Cape of Good Hope, was possibly advantageous, or at 
least not injurious. But as at present carried on, it is 
highly pernicious, by the exhausting drain of specie it 
creates. On this strong ground, and moreover as the 
coarse fabrics from that quarter, as stated in the memo- 



52 Slighted atiplications of Manufacturers, 

rials, are marie of inferior materials: and as we possess a 
boundless capacity of supply, every principle of sound 
policy, regard for the vital interests of their country, as 
well as the paramount claim on Congress from so useful 
a body of citizens, for protection, ought to have insured 
compliance with the request. To all these considerations 
fatally no attention was paid. 



Policy of Frederick II, of Prussia, 

From the view which we have given of the policy of 
Russia, we invite attention to that of Frederick II. His 
integrity and regard for the rights of his neighbours, no 
upright man will assert. But on his profound wisdom and 
sagacity as a statesman the world is agreed. A dissenting 
voice is no where heard. On these points he would stand 
comparison with any monarch of ancient or modern times, 
and would rise paramount over ninety -nine out of a hun- 
dred. His system of political economy is therefore wor- 
thy of the most serious consideration, and cannot fail to 
shed strong light on the important subject we are discuss- 
ing. 

To the promotion of the industry of his subjects, he be- 
stowed the most unremitting attention, well knowing that 
it was the most certain means of increasing the popula- 
tion of his dominions, and of course the wealth and happi- 
ness of his subjects, as well as his own power. From this 
grand and paramount object he was never for a moment 
diverted by his ambitious wars; and notwithstanding tho 
desolation they caused, he doubled the population of his 
paternal estates during his reign. To foster and protect 
arts and manufactures, he spared neither pains nor ex- 
pense; " The king protects and encourages manufactures 
in every possible manner^ especially by advancing large 
sums of money to assist them in carrying on their manu- 
factures^ animating them by rewards^ and establishing 
7nagazines of wool in all the little towns^for the benefit of 
the sinall woollen manufactures,^^* — He was so completely 
successful that he not only doubled and trebled the num- 
ber of artists and manufactures in those branches already 

* Hertzberff's Discourses delivered at Berlin, 1786, p. 25. 



Prussian Policy. 5^ 

established, but introduced a great variety, formerly not 
practised by his subjects; *' Before ihe commencement 
of this reign, Prussia had but few silk manufactures^ and 
those of little ivifiortance. But thf present king has estab- 
lished and given liberal encouragement to so great a num- 
her^ that they employ more than five thousand workmen; 
and the annual value of the goods manufactured by them 
is two millions of crowns. In the course of the last year 
1,200,250 ells of silk stuffs have been manufactured at 
Berlin, and 400,000 of gauze. 

" The cotton manufacture alone employs nearly five 
thousand workmen."* And thus, instead of being tributary 
to other nations, as she had formerly been, Prussia was en- 
abled to export her manufactures to an immense extent to 
distant countries. 

" We are in possession of almost every possible kind of 
manufactures; and we can, not only exclusively supply the 
Prussian dominions, but also furnish the remote countries 
of Sfiain and Italy with linen and woollen cloths; and our 
manufactures go even to China^ where some of our Silesia 
cloths are conveyed by the way of Russia, We export 
every year linen cloth, to the amount of six millions of 
CROWNS, and woollen cloths and wool to the amount of 

FOUR MILLIONS.^t 

The measures he adopted for attaining these great ends, 
were worthy of the high character he enjoys as a states- 
man. He made large loans to needy artists and manufac- 
turers, to enable them to establish their various branches 
of business. " If the king has greatly increased popula- 
tion by his encouragement of agriculture, he has advanced 
it as much^ and fierhaps more^ by the great number of 
manufactures and trades of all kinds ^ which he has caused 
to be established^ or to which he has given encouragement 
at Berlin^ at Potsdam^ and in almost every city and town 
in his dominions *''\ He purchased large quantities of raw 
materials, and provided magazines, where they sold at rea- 
sonable rates. He bestowed liberal rewards on artists and 
manufacturers, for excellence in their various branches; 
and moreover exempted them in various places from mili- 
tary service. In a word, he devoted all the powers of his 
great mind, and made most liberal drafts on his treasury, 
for the accomplishment of this mighty object, which has 

* Idem 26. f Idem 23. |Ibid> 

E 2 



54 Prussian Policy, 

attracted so small a share oi attention in this country from 
those whose peculiar duty it was to pron)ote its success. 

" It is with a view to encourage trade that the inhabi- 
tants of Berlin and Potsdam are /'^em/z^ec? /ro/w military 
service; and his majesty grams nearly the same indulgence 
to the inhabitants of the circles of the mountains of Silesia, 
•where the poor, but industrious and sober weavers, who 
are settled in a narrow and barren district, carry on those 
Jioiirishing linen manufactures which fir oduce us an exfior- 
tation of so many millions; and to the little city of Hire hb erg 
onlyy a trade of two millions of crowns annually. The king 
has in this district a canton for his foot -guards; but from 
his unwillingness to disturb the population of the district, 
he seldom draws from hence any recruits."* 

Here the calm and candid observer, who casts his eye 
on the system of Frederick, and contrasts it with that of 
the United States, cannot fail to feel the same degree of 
mortification and deep regret, that the contrast with that 
of Russia produced. He will behold on the one side a 
grand, liberal, and magnanimous policy, disregarding ex- 
pense in sowing prolific seed, which sprouted forth abund- 
antly, and repaid the cultivator tenfold, nay, a hundredfold.! 

'^ Idem, 25. 

f " As national industry forms the second basis of the felicity 
and power of a state, I shall endeavour to prove here in a summary 
manner, that the Prussian monarchy possesses it in an eminent 
degree: and, perhaps, immediately after France, England and 
Holland; those powers which, for two centuries, have had the al- 
most exclusive monopoly of manufactures, of commerce, and of 
navigation; of which the Prussians have had no part, but since the 
close of the last century, and the beginning of the present. This 
is not the place to make an exact and general table of the Prus- 
sian manufactures; 1 shall, therefore, confine myself to giving a 
general idea, and some particular examples. We have almost aU 
the trades and manufactures that can be conceived, as well for 
things of absolute necessit}', as for the conveniences and luxuries 
of life. Some of them have attained to a great degree of perfection, 
as those of woollen cloth, linen, porcelain, and others. The great- 
er part are in a state of mediocrity, and may be brought by de- 
grees to perfection, if there is continued to be given to them the 
same attention, assistance, and support, which the Prussian gov- 
ernment has hitherto most liberally bestowed; and especially when 
to these are added the motives and inducements of emulation, 
which are absolutely necessary for bringing manufactures and 
works of art to perfection. Our manufactures exclusively sup- 
fly all the Prussian dominions; and. xcith a very favourable rival- 



Prussian Policy, 55 

Loans, bounties, premiums, and important immunities, as 
we have stated, were freely and liberally awarded. 

In the United States the seed was sown by individual ex- 
ertion and enterprise. It required little care to foster and 
make it strike deep root. There was no demand of loans — 
of bounties — of premiums — or of immunities. All that 
was asked — all that was necessary, was mere protection 
from foreign interference — a protection which would have 
cost the government nothing, and would have enriched the 
nation. It was fatally withheld: and a large portion of the 
seed so plentifully sown and so promising of a fertile har- 
vest, hast perished; and those who withheld, as well as those 
who besought, the proteclion, are now in common, suffer- 
ing the most serious injury from that mistaken policy. 

" The Prussian dominions had in the course of the year 

1784,* 

Pi'oduce of the 

Manufac- Manufactures 

Looms. turers. in Rix dollars. 

In linens 61,000 80,000 9,000,000 

In cloths and woollens - - - 18,000 68,000 8,000,000 

In silk ----- 4,200 6,000 3,000,000 

In cotton 2,600 7,000 1,200,000 

In leather 4,000 2,000,000 

In iron, steel, cepper, &c. - - - - 3,000 2,000,000 
In tobacco, of which 140,000 quintals are the growth 

of the country - - - - - - 2,000 1,000,000 

Sugar 1,000 2,000,000 

Porcelain and earthenware - - - - 700 200,000 

Paper 800 200,000 

Tallow and soap 300 400,000 

Glass, looking-glasses - - - - - 200,000 

Manufactures in gold, silver, lace embroidery, &c. - 1,000 400,000 

Silesia madder - 300,000 

Oil 600 300.000 

Yellow amber 600 60,000 



165,000, 30,250,000 

ship^ especially for cloths^ linens^ and woollens, Poland, Russia, 
Germany, Italy, and especially Spain and America. In order to 
afford a more strong" and clear conviction, I shall here add a com- 
pendious table of the principal trades and manufactures, which 
exist in the Prussian monarchy, of their produce, and of the num- 
ber of traders and manufacturers who are employed in them." — 
Hertzberg^s Discourses, p. 101. 

* Hertzberg^s Discourses, p. 103. 



56 Prussian Policy, 

DISBURSEMENTS OF FREDERIC 11. FOR PRO- 
MOTION OF MANUFACTURES. ANNO J785.* 

In J^en& March. 

Crowns. 
For establishing a manufactory of leather, and for tanning at 

Landsberg --.------* 3,600 

For a similar manufactory at Drisen --..-- 3,000 

Ditto Ditto at Cottbus ----- 1^000 

For erecting a fulling mill at Drambourg - - - - 200 

For increasing the magazines of wool for the manufacturers of 

small towns --------- 3,000 

In Pomerania, 

For enlarging the manufactory of leather at Anclam - - - 3,000 

For establishing a manufactory of leather at Treptow - - 1,500 

For establishing a manufactory at Griffenhagen - - - 1,500 
For establishing a manufactory of fustians and cottons at Fredericks- 

hoIU 1,000 

For increasing the magazines of wool in the small towns - 4,000 

For establishing a manufactory of beaver stockings at Lawenberg 2,000 

For establishing a cotton manufactory at New Stettin - - 2,400 
For a magazine of cotton for the benefit of the manufacturers of Pome- 

rania .--. 6,000 

East and West Prussia, 

For repairing the damage occasioned by the burning of woollen cloths 

near Preusch Eilau -------- 3,500 

For establishing a manufactory of muslin at Konigsberg - - 1,000 

For a manufactory of leather at Preusch Eilau - - - - 5,000 

For a dye-house at Gastrow ------ 2,600 

For magazines of wool in the little towns of West Prussia - - 6,000 

For a manufactory of press-boards - - - - ^ 6,000 

Silesia, 

For the establishment of forty weavers at Striegaw and in the neigh- 
bourhood ------ 17,368 

For premiums relative to manufactures - - - 2,000 

Brandenburgh. 

For establishing work shops for carding of wool - - - 1,360 

For rewards, intended for the encouragement of spinning in the 
country 2,000 

Carried over, 78,928 
'^ Idem^ p. 44. 



Prussian Policy, 



57 



Brought over, 78,928 

For the erection of silk mills at Berlin - - - - 24,000 

For purchasing the cods of silk worms, and causing them to be well 

spun ------- 10,000 

For machines for carrying on the Manchester manufacture * 10,000 

ANNO 1786. 

In Brandenburgh* 

For procuring Spanish sheep - - - - 22,000 

For increasing the magazines of wool - - - - 17,000 

For improvements relative to the spinning of wool ^ - - 4,000 

For a manufactory of woollen cloths at Zinna - - - 3,000 

For a plantation of Mulberry trees at Nowawest - - 2,000 
For the purchase of cods of silk worms and establishing a magazine 

of them - 20,000 



In the JSTtw March. 
For several small manufactures of wool and leather, and for 
fulling mills in Custrin, Newedel, Falckenburgh, and Som- 
merfeldt, towns of the New March - - - 



4,020 



For increasing the 
For a manufactory 
For a manufactory 
For a manufactory 
For a manufactory 
For a manufactory 
For a manufactory 



In Pomerania, 
magazines of wool 
of cotton stockings at Gartz - 
of leather at Anclam 
of Leather at Treptow - 
of sail cloth at Rugenwalde - 
of cables in the same city 
of cloth for flags at Stettin - 



6,000 
4,000 
8,000 
1,600 
5,000 
4,000 
3,000 



In JEast Prussia, 

For a manufactory of morocco leather at Konigsberg - 3,000 

For a manufactory of English earthenware in the same city » 4,000 

For a manufactory of Leather - - - - 1,000 

For a manufactory of ribands and bags - - - - 600 

For a cotton manufactory at Gumbinnen - - - 1,000 



In West Prussia. 
For a dye-house at Darkhenen - - - - 

B'or a dye-house at Bromberg - - - - 

For a manufactory of fine Cloth at Culm 

In Silesia, 
Premiums for manufactures and for encouraging and supporting 
weavers - - ^ - - - - 



2,60a 
2,600 
7,200 



17,000 



Total expended in two years, 265,448 



58 Demoralization. 



NO- V. 

Philadelfihia^ May 3, 1819. 
THE friends of domestic manufactures in this country 
have had to combat a host of objections, maintained with 
great zeal and plausibility, many of which, though utterly 
destitute of foundation, have had universal currency. We 
shall devote the present number to obviate some of them. 



I. The demoralizing and debasing effects of manufactu- 
ring establishments. 

II. Their injurious interference with commerce. 

III. The high rate of wages in the United States. 

IV. The great extent of our vacant lands, which ought 
to be settled previous to the erection of manufacturing 
establishments on a large scale. 

V. The extortions practised, and the extravagant prices 
charged by manufacturers during the war. 

VI. The loss of revenue that would arise from protect- 
ing or prohibitory duties. 

VII. The danger of encouraging smuggling by high 
duties. 



I. Demoralizatio7i. 

The most specious and generally prevalent argument 
against manufacturing establishments, is grounded on their 
debasing and demoralizing effects. The honest feelings 
and the sympathy of the humane and enlightened part of 
the community, and the passions and prejudices of the re- 
mainder, have in consequence been enlisted and excited to 
activity against them. The changes have been rung, times 
without number, on the depravity, corruption, and pauper- 
ism inseparable from large assemblages of men^ women, 
and children, collected in a small compass, inhaling a pes- 
tiferous atmosphere, both moral and physical. The most 
captivating pictures have been drawn, by way of contrast, 
of the purity, the innocence, the healthiness, and the inde- 



Demoralization, 59 

pendence of agricultural employments — and the whole has 
been wound up by deprecating the folly and insanity of se- 
ducing the Arcadian cultivators of the soil into the business 
of manufacturing, so destructive to their health, their mo- 
rals, and their happiness. 

This objection, like a thousand other common places, 
has been almost universally assumed, and freely admitted 
without demur or scruple. Even the friends of manufac- 
tures have hardly dared to doubt its correctness, barely 
lamenting it as one of the many serious evils inseparable 
from society in its present state. And had it not been 
for the investigations of a recent writer (Colquhoun) it 
might have continued for another century to lead mankind 
astray. 

But even if these views were correct as regarded the 
overgrown manufacturing establishments in England, and 
some other parts of Europe, they would be inapplicable 
here; as the best friends of manufactures in this country 
have confined their views to the home market generally; and 
in so wide a country as this, if the manufacturers were de- 
graded and oppressed by men of great wealth in one dis- 
trict, they vv'uld be able to resort to establishments in an- 
other, of which, were manufactures duly protected, there 
would be numbers in every quarter of the union; and, at all 
events, the western lands would afford an asylum for the 
oppressed, and a safeguard against oppression. 

The most eminent statistical writer in Europe at present 
is probably Colquhoun, author of the " Police of London," 
and various other important works, bearing the strongest 
marks of profound research, deep penetration, and philoso- 
phical inquiry. This writer has published a curious and 
important table of the pofiulation^ offenders^ and fiaufiers of 
every county in England, which settles this important point 
forever, and which we annex. The character of the author 
and the authenticity of the work, forbid all appeal from its 
authority, and cannot fail to remove the doubts of the most 
sceptical. 



60 



demoralization. 



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Colquhoun furnishes another table, of the state of pau- 
perism throughout England, which we also annex — 



Coun- 
ties. 
5 



Per cent, dn the 
population. 

In Cumberland, Cornwall, Lancaster, 
Nottiijghani, and East Riding of 
Yorkshire, the number of pau- 
pers in eaci) 100 of the population 7 (less than 1-14) 

3. Tn Derby, Middlesex, and Rutland 8 (less than 1-12) 

4. In Lincoln, Northumberland, Stafford, 

and North Riding of Yorkshire - 9 (above 1-11) 



* Colquhoun on Indigence, p. 72. 



Demoralization, 61- 

Coun- Per cent, on the 

ties. population 

4 West Riding- of York, Durham, Mon- 
mouth and Salop 10 - - (I-IO) 

4 Bedford. Chester, Somerset, and West- 
moreland 12 (under 1-8) 

9 Cambridge, Devon, Hereford, Hunt- 
ingdon, Surry, and Worcester - 1 3 (above 1-8) 

3 Herts, Dorset and Kent, - - - - 14 (above 1-7) 

4 Gloucester, Leicester, Southampton, 

and Warwick ------ 15 (above 1-7) 

2 Norfolk and Northampton - -• - 16 (under 1-6) 

2 Essex and Suffolk 17 (above 1-6) 

1 Buckinghamshire 18 (above 1-6) 

1 Oxfordshire 20 - - (1-5) 

1 Berkshire 21 (above 1-5) 

2 Sussex and Wiltshire - - - - 23 (nearly 1-4) 
12 Counties in Wales, averaging - - 9 (above 1-11 )* 

On the first of these tables he makes the following point- 
ed and decisive remarks: 

* From this comparative statement,' it appears, < that con- 
trary to the generally received ofiinion^ the numbers of fiaU' 
fiers in the counties which are chiejiy agricultural^ greatly 
exceed those nvhere manufactures prevail! I ! Thus in Kent 
and Surry, where the aggregate population is 576,687, 
there appear to be 77,770 paupers; while in Lancashire, 
where the population is 672,731, the paupers relieved are 
only 46,200.'t 

He has not compared the two descriptions of the popu- 
lation on the subject of crimes. But the contrast in this re- 
spect, it appears, is equally unfavourable to the agricultu- 
ral districts. However, as manufactures are spread through- 
out the kingdom, and as all the counties partake to a cer- 
taia degree of the double character of agriculture and 
manufactures, it is impossible to institute a general com- 
parison. But it will answer every valuable purpose of 
testing the truth or falsehood of the prevailing opinions, 
to take a view of six counties, three decidedly agricultural^ 
and three as decidedly manufacturmg, 

^ Colquhoun on Indigence, p. 265. f Idem, 273. 

F 



65 



Demoralization* 



Manufacturing 
counties. 


Popula. . Offen- 
tion. 1 ders. 


Paupers, 


1 Ag^ricult. 
' counties. 


Popula- 1 
tion. 


Offen- 
ders. 


Pauper*. 


Lancashire 

Yorkshire 

Stafford 


672,731 

868,892 
239,153 


371 

245 
91 

707 


46,000 
77,661 
22,610 


jNorfolk 
iKent 

'Surry 


2^3,371 

307,624 
269,043 


163 
210 
199 


42.707 
41,332 
36,(38 




1,770,776 


146,171 


i 


860,038 


572 


120,477 



In the three manufacturing counties, there is only one 
offender for every 2500 people, whereas, in the agricultu- 
ral, there is one for 1600; whereby it appears that the lat- 
ter districts have above fifty per cent, more criminals than 
the manufacturing, in proportion to their population. This 
is a strong and decisive fact. 

In the three manufacturing counties, the paupers are 
only eight per cent, of the population; whereas, in the agri- 
cultural, tiiey are about fourteen. 

We are tempted to cast a further glance on this table, 
and to call the attention to a more striking comparison. 
Yorkshire contains a greater population than the three spe- 
cified agricultural counties, and yet has far below half the 
number of offenders, and not two-thirds of the number of 
paupers. 





Poi)ulation. 


Offenders. Paupers. 


Yorkshire - - - 


858,892 


245 77,661 


Norfolk, Kent, and Surry 


850,038 


572 120,477 



This result may appear extraordinary and paradoxical. 
But a very slight reflection on the subject will remove all 
the paradox, and enable us to account satisfactorily for the 
existing state of things. Idleness is as much the parent of 
poverty and guilt, as industry is of independence and vir- 
tue. In agricultural districts, there is a very large pro- 
portion of the labour of the women, and a still greater pro- 
portion of that of the young people, wholly lost. The 
latter waste a great part of their early years in total idle- 
ness and in the contraction of bad habits. Hence arises a 
fruitful source of pauperism and guilt. 

These statements, independent of their overwhelming 
bearing on the present question, may have another very im- 
portant advantage. They serve to display, in strong colours, 
the danger of trusting to mere assertions, unsupported by 
facts. There is not in the whole range of political eco- 



Jnterjerence with Commerce, 63 

nomy, a doc^ma that has been more universally received, 
or appeared more plausible than the one here combated, 
now unequivocally proved by the best authority in Europe, 
to be not only not true, but the very reverse of truth. 

II. Interference with Commerce, 

Among the opponents of the manufacturing system, were 
formerly great numbers of those citizens, engaged in com- 
merce, who appeared impressed with an idea that in pro- 
portion as manufactures are patronized and extended, in 
the same proportion commerce must be impaired. Hence 
a degree of jealousy has been fostered among the com- 
mercial, of the manufacturing class of our population, as 
if there were a great hostility betw^een their respective 
interests. The most enlightened merchants at present 
are convinced of the errors of these views. It is not diffi- 
cult to prove, that they rest on as sandy a foundation as the 
superior purity and freedom from pauperism of the agri- 
cultural districts. 

It will not, we trust, be denied, that in every community, 
the greater the variety of pursuits and employments, the 
greater the field for exertion, and the less danger of rival- 
ship, or of any of them being too much crowded. Hence 
an obvious consequence of the destruction of so many ma- 
nufacturing establishments, as, during the war, were in 
' the full tide of successful experiment,* has been to divert 
the capital and industry engaged in them to commercial 
pursuits, whereby the latter are so much overstocked as to 
narrow or almost destroy all chance of success. Our 
wharves, our coffee houses, and the assignments in our 
newspapers, fully prove that commerce is overdone, and 
that it has unfortunately become a most precarious profes- 
sion. Whereas, were manufactures properly protected, 
commerce would be relieved from the superfluous portion 
of citizens who pursue it, and who, by the eagerness of 
'heir competition in the markets, domestic and foreign, 
destroy each other's chances of success. 

Another source of indemnification to commerce for any 
disadvantage it might suffer from the patronage of manu- 
factures, would be the trade in various kinds of raw mate-- 
rials imported from foreign countries for the use of the ma- 
nufacturers.* 

* An intelligent citizen, who has carefully examined the entries 
into the port of Philadelphia, assures us that the tonnage employed 



64 High Wages* 

An important consideration remains. The diminution 
of our foreign trade, which is at all times precarious, and 
often ruinous, would be further compensated by the vast in- 
crease of the coasting trade, in the transportation of raw 
materials from the southern to the middle and eastern 
states, and of manufactured articles from the latter to the 
former. 

We do not deem it necessary to enter into further detail, 
or to exhaust the subject. We trust enough has been said 
to prove, that a liberal patronage extended to manufactures 
would be eminently beneficial even to the mercantile part 
of our citizens, not merely by reducing within reasonable 
bounds the extravagant number of competitors in that de- 
partment, whereby so many engaged in it have been ruined; 
but by affording profitable employment to a portion of that 
capital which has escaped the destruction arising from the 
ruinous state of our commerce since the war, and also by 
the general prosperity it would produce. This system, more- 
over, would afford commercial men opportunities of pro- 
viding for a part of their children in a less hazardous line of 
business than commerce, 

III. High Wages. 

The high wages said to be given in this country have 
been used as a powerful argument against encouraging ma- 
nufactures, and have led many of our citizens to believe that 
we would not be capable of manufacturing extensively for 
perhaps a century to come. This idea has maintained its 
ground against the strong and palpable fact, that many of 
our manufactures have thriven very considerably, notwith- 
standing the rivalship of foreign competitors. The differ- 
ence, however, between the wages here and in England, in 
many branches of business, is far less than is generally sup- 
posed. But the argument falls to the ground, when we 
reflect that in most of those branches depending wholly on 
manual labour, our manufacturers have met the rival ar- 
ticles from Europe with great success. Our hatters, shoe- 
makers, saddlers, coachmakers, printers, cabinet makers, 
type founders, curriers, glovers, smiths, and various other 
classes, wholly debarred of the advantage of machinery, 

even now in the importation of raw materials, leather, dye-wood, 
iron, lead, &c. &c. is equal to that employed in the importation of 
bale goods. 



Vacant Lands, 65 

have maintained their ground far better than those citizens 
concerned in branches in which machinery is employed, of 
whom a large portion have been rained! 

This is a very extraordinary fact, and could not have en- 
tered into any previous calculation. The endless variety of 
mill-seats throughout the United States, and the acknow- 
ledged talents of our citizens in mechanical pursuits, would 
have led to form conclusions wholly different. It would 
have been believed that whatever we might suffer in cases 
in which manual labour alone was employed, we should be 
triumphant wherever water pov/er and machinery could be 
called into operation. 

IV. Vacant Lands, 

Among the most formidable objections against the pro- 
tection of national industry in the form of manufactures, the 
extent of our vacant lands holds no mean place. Many 
members of congress, and others, when they hear of the 
decline of manufactures — the bankruptcy of the manufac- 
turers—and the sufferings of the workmen, with great gra- 
vity advise the sufferers " to g'o back^'^ and cultivate the soil 
in the wilderness, where there is an ample field for their 
industry. This is prescribed as a sovereign and infallible re- 
medy for their evils. 

So much importance is attached to this idea, and its use 
is so general, we had almost said, so universal, that it re- 
quires to be dilated on at some length. We shall consider 
it under two points of view — 

I. Are manufacturers in general capable of cultivating 
vacant lands? 

It requires but a moment's reflection to be satisfied, that 
the mass of persons engaged in manufactures are wholly 
unfit for agricultural employments; more particularly for 
clearing and cultivating those vacant lands to which they 
are directed to resort, as a terrestial paradise. A man 
who has spent the prime of his life in making watches, 
cabinet ware, hats, or shoes, or weaving cloth, would be 
nearly as much out of his element at agricultural labour 
as a farmer would be in a shoemaker's or hatter's work- 
shop. 

Moreover a large portion, in many cases three fourths 
of the persons engaged in the cotton and woollen branches, 
are women and children, wholly unfit for farming. 

F 2 



^6 Vacant Lands. 

II. Suppose the thousands of manufacturers now out of 
employment, and those who are likely, from the present 
stagnation of manufactures, trade, and commerce, to be 
discharged, were to apply themselves to agriculture, is 
there any chance of a market for the surplus of their pro- 
ductions? 

This is a vital question, and demands the most serious 
and sober consideration. Its decision must affect the cha- 
racter of the past political economy of our government, and 
clearly demonstrate the future course pointed out to this 
rising empire by sound political wisdom. 

It is palpable that so far from an increase of agricultu- 
rists being necessary in the interior of this state, and in the 
whole of the western states, that they are too numerous for 
their own prosperity, and hence agricultural productions are 
almost constantly a drug, and afford a very slender remu- 
neration for the labours of the field. Increase the num- 
ber, and you increase the evil. Increase the number of 
manufacturers, you diminish it. 

In consequence of having an over proportion of our po- 
pulation engaged in agricultural pursuits, the foreign mar- 
kets are almost constantly glutted with our staple articles 
which are frequently purchased in the West Indies and Eu- 
rope at a lower rate than in our seaport towns. And hence 
the most ruinous losses are sustained by our merchants, of 
whom a lurge proportion are almost every year blotted 
from the map of the commercial world. 

When the cause, not of the manufacturers alone, as was 
erroneously supposed, but of the whole nation, which was 
deeply involved in the question, was powerfully pleaded be- 
fore congress, the southern planters were admonished to 
secure themselves a grand domestic market, independent 
of the caprice of foreign nations. They were prophetically 
warned of the ruinous consequences that must inevitably 
follow from the adoption of the contrary system. Trusting 
to a continuance of the very favourable markets they then 
enjoyed, in which they could anticipate no change, the pe- 
titions and memorials were rejected. But the delusion is 
past and gone. The age of sober reflection has ariived. 
And we trust it is iuiposslblc for those whose votes pre- 
vented such adequate protection to the cotton manufactui^es 
as would have secured an unfailing and increasing home 
market, to reflect on those votes without the most heartfelt 
regret at the course they pursued, not merely as it has 



Tacant Lands, 67 

affected their own interests, but for the deleterious effects 
it has produced, and is likely to continue to produce on the 
welfare of the nation. 

At the time those votes were given, which signed and 
sealed the destruction of a large portion of the cotton ma- 
nufactures in the middle states, cotton was thirty cents per 
pound. It was not necessary for congress to have adopted 
the policy of Russia or France, which nations prohibit the 
importation of all cotton manufactures — nor that of Great 
Britain which imposes a duty of 85/. per cent, on them. 
Had they barely prohibited the low priced articles, and laid 
an adequate protecting duty on all other descriptions, cot- 
ton would probably have never fallen below that price. So 
large and so constantly increasing a portion of it would be 
consumed in this country, that it could not be materially 
affected by the fluctuation of foreign markets. It now sells 
at sixteen or eighteen cents: and it is not easy to calculate 
how long it will remain at that rate. 1 he value of the es- 
tates of the southern planters is thus reduced one-third. 
Dearly, therefore, do they expiate their rejection of the 
earnest prayers of their fellow citizens, who, as we have 
stated, were actually, as is now in full proof, pleading the 
cause of the whole nation, and at least as much that of the 
€otton planters as of any other portion of our citizens. 

The depreciation of the price of the two other great sta- 
ples of the country, tobacco and flour, is at least as ruinous 
as that of cotton. 

The reduction of the value of estates is not confined to 
those of cotton planters. Real estate generally throughout 
the union, has suffered a vast depreciation. In many places 
it has fallen one-fourth — in others one-third, and in some 
even one-half. 

We do not pretend that the low tariff proceeded solely 
from the southern planters. This would be contrary to the 
historical fact. Members from every state in the union, ex- 
cept three, voted for the existing rates. But of all the 
members from the five southern states, Maryland, Virginia, 
North Carolina, South Carolina, and Georgia, only five vo- 
ted against the reduction of the duty on cotton goods to 
twenty -five per cent.* 

* In order to present a correct view of this interestiDg- subject, 
we annex the yeas and na}s on a motion made by Mr. Forsyth, on 
the second of April, 1816, to amend the report of the committee on 
the bill to regulate the duties on imports, by striking out thirty 'per 



68 



Yeas and J\/*ays. 



To test more fully the correctness of the prevailmg idea 
we here combat, we will suppose it carried generally into 
operation, and that a large portion of the persons at present 
employed in manufactures, had " gone back^^ and were 

'cenU on cotton goods proposed by that committee, and substituting 
tmenty-jwe. 



YEAS. — (For twenty-five per cent.) 



^tw Hampshire, 


Kent 


Breckenridge 


Atherton 


Lovett 


Goodwyn 


Cilley 


Root. 


Hawes 


Hale 


Pennsylvania. 


Hungerford 


Webster 


Burnside 


Jewett 


Wilcox 


Heister 


Johnson 


Voss 


Hopkinson 


Kerr 


Massachusetts. 


Ross 


Lewis 


Bradbury 


Whiteside 


Lyon 


Nelson 


Delaware. 


M'Coy 


Pickering 


Clayton 


Nelson 


Reed 


Maryland. 


Noyes 


Ruggles 


Archer 


Pleasants 


Taggart 


Baer 


Randolph 


Ward 


Goldsborough 


Roane 


Vermont. 


Hanson 


Sheffey 


Langdon 


Herbert 


Smith 


Connecticut. 


Moore 


Tait 


Champion 


Pinkney 


M>rth Carolina. 


Law 


Smith 


Clarke 


Mosely 


Stuart 


Culpepper 


Stearns 


Wright 


Edwards 


Sturgis. 


Virginia, 


Forney 


Mw York. 


Barbour 


Gaston 


Grosvenor. 


Basset 


NAYS. 


Massachusetts. 


Birdsall 


Southard 


Baylies 


Brooks 


Pennsylvania, 


Connor 


Comstock 


Crawford 


Hnlbert 


Crocheron 


Darlington 


Paris 


Gold 


Glasgow 


Strong 


Savage 


Griffin 


Wheaton. 


Scherck 


Hahn 


Connecticut. 


Throop 


Ingham 


Davenport 


Townsend 


Irwin 


Pitkin 


Wendover 


Lyle 


Rhode Island. 


Ward 


Maclay 


Boss 


Wilkin 


Milnor 


Mason 


Willoughby 


Piper 


Vermont. 


Yates 


Sergeant 


Chipman 


JVeit? Jersey. 


Wallace 


JVeio York. 


Baker 


Wilson 


Adgate 


Batcman 


Virginia. 


Beits 


Bennet 


Jackson 



King 

Love 

Pickens 

Yancey. 

South Carolina. 

Chapel 

Huger 

Lowndes 

Middleton 

Taylor 

Woodward 

Georgia. 

Cuthbert 

Forsyth 

Hall 

Lumpkin 

Telfair 

Wilde. 

Kentucky. 

Hardin 

M'Kee 

Tennessee, 

Henderson 

Thomas.— 81 



Marsh 
Newton 

South Carolina. 
Calhoun 
Mayrant 

Ohio. 
Alexander 
Clendenin 
Creighton 

Kentucky. 
Desha 
Johnson 
M'Lean 
Sharpe 
Taul 

Tennessee. 
Powell 
Reynolds.— 60. 



Distresses of Ohio, 69 

'^ cultivating our vacant lands.'' The obvious consequence 
would be that the quantity of the agricultural productions 
of the country, and our demands for manufactured goods 
from abroad, would both have been greatly increased. Of 
course the prices of the former would have been still more 
ruinously reduced, and the nation still more drained of a 
circulating medium. It does not require much skill to cal- 
culate what ruinous consequences such a system of policy 
would have produced. 

Before we dismiss this part of our subject, we wish, fel- 
low citizens, to present it in another point of view. Sup- 
pose 10,000 agricultural citizens settled in the interior of 
any of the western states, and acting on the maxim of Adam 
Smith, that is, '< buying where they can purchase cheap- 
est''"— of course in Europe and in the East Indies, at a dis- 
tance of from three to ten thousand miles, subject to all the 
variety of charges incidental to such a commerce, and then 
transmitting their surplus productions three thousand miles, 
subject so similar charges! what a state of dependence and 
poverty this policy is calculated to produce! Yet it is to a 
certain extent the situation of a large portion of the interior 
of the United States. And hence the general depression, 
the stagnation of business, the drain of the circulating me- 
dium, and the consequent depreciation of their bank paper. 

Of this policy the state of Ohio has long been, and all the 
other western states are gradually becoming, melancholy 
victims. It can never be sufficiently regretted, that with a 
boundless capacity of supplying themselves with nearly 
every thing they require, a very large proportion of their 
clothing and other articles should be drawn from Europe, 
and that the produce of their industi^ should depend for 
its value on the state of the markets in that quarter of the 
globe! 

Let us exhibit a brighter picture, on which the mind 
can dwell with delight; a picture, which a correct tariff 
could not have failed to produce, and which, we trust, the 
wisdom of congress will ere long produce. Let us suppose 
that these 10,000 citizens had linen, cotton, woollen, and 
leather manufactures adequate to their wants in their im- 
mediate vicinity, and that instead of sending their flour and 
tobacco to New Orleans and thence to Liverpool, the for- 
mer at four or five dollars per barrel, and of course pur- 
chasing a coat with six or eight barrels, they had a market 
for it at home, and could purchase a coat for three or four 



70 Extortion during the War, 

barrels, and in the same proportion for other articles. The 
difference between the two situations is exacily the same 
as between affluence and penury — happiness and wrelched- 
Dcss. What a contrast! what a lesson does this superficial 
view furnish the legislature of the United Slates— and what 
9 strong sentence of condemnation it pronounces on Adam 
Smith*s theory! 

V. Extortion during the War, 

This stands on nearly the same ground of error as the 
preceding objections. During that period, the wages of 
labour were high — the expenses of transportation of the 
raw materials, as well as of the manufactured articles, very 
exorbitant — and those raw materials were sold at high rates. 
All these circumstances combined to enhance the price of 
goods of every description. Moreover, the heavy disburse- 
ments for the purchase of mill-seats and erecting machine* 
ry, required extraordinary profits^ — And finally, the disor- 
ders and irregularities of a state of warfare, forbid men of 
sound minds from grounding any general inferences on the 
occurrences of such a period. 

But suppose all the charges of this class were judicially 
proved; with what propriety, we boldly, but respectfully ask, 
could a planter who raised cotton for 10 a 12 cents, and 
for years sold it at 20 and 30, and who would without scru- 
ple have sold it at 75 or 100 — or a merchant who buys flour 
at ten dollars, carries it to the West Indies, when the peo- 
ple are in a state of starvation, and there, taking advantage 
of their distress, sells at 30, 40 or 50 dollars — with what 
propriety, we say, can they reproach the manufacturer for 
having sold cloth which cost him 8 or 9 dollars, at 12 or 14? 
The application of the parable of the bean and the mote, 
was not confined to the commencement of the Christian era. 
Its lessons are as necessary now as they were 1800 years 
ago. 

On this point we once more refer to the luminous maxim 
of Alexander Hamilton, contained in our third number, 
which is beyond the power of refutation, and which points 
out the proper course to be pursued, with the hand of a 
master. 

This maxim has received the strongest corroboration 
from the practical experience of the United States, which 
is within the knowledge of almost every individual in it. 



Loss of Revenue. 71 

There is probably not a single article manufactured here 
Avhich is not sold at a fair price. This can never fail to be 
the case, in a country where there this is so much enter- 
prize, so much capital, and so much industry, at all times 
ready to be employed in any pursuit which affords a reason- 
able prospect of remuneration, and likewise such a spirit 
of competition. In fact the rivalship is, in many cases, car- 
ried so far that prices are reduced too low, and in conse- 
quence many of the competitors ruined. 

But facts speak louder than words. For years the nation 
has been led astray by groundless accusations of the ex- 
tortions of manufacturers, which have been an unceasing 
source of declamation, and been regarded as an unanswera- 
ble argument against ct)raplying with the requests of this 
class of citizens. During this whole time the farmers and 
planters have been realizing the most exorbitant profits; 
amassing large and independent fortunes, and exhibiting a 
degree of prosperity rarely exceeded.* On the contrary 
nearly one-half of the '^ extoi^tionate'^ manufacturers of cot- 
ton and woollen fabrics, victims of a pernicious policy, have 
been ruined, and a large portion of the remainder are bare- 
ly able to struggle along in hopes of a change in the policy 
of the country! 

VI. Loss of Revenue, 

The solicitude to avoid impairing the revenue, by pro- 
hibiting the importation of any merchandize, or by such 
high protecting duties as might operate to diminish im- 
portation, has been openly avowed in congress among the 
reasons for rejecting the prayers of the manufacturers for 
protection! 

It is lamentable to think that in the enlightened nine- 
teenth century, it should be necessary to combat such a 
prejudice. 

Let us calmly examine this objection, and see on what 
ground it rests. Let us suppose the annual amount of our 
importations of cotton fabrics, to be 15,000,000 of dollars; 

* The losses resulting" from the excessiv^e quantities of our pro- 
duce, with which foreign markets are so frequently overstocked, 
have hitherto scarcely touched the farmers or planters, who have 
almost universally sold their produce at hig-h rates. The injury, as 
already stated, has fallen on the merchants. The farmers and 
planters, however, now begin to participate largely in the perni- 
cious effects of this system. 



72 Loss of JReve^iue. 

and that by adequate protection, they could be manufactur- 
ed among ourselves, and this large sum retained in the 
country; can it be admitted for a moment that the question 
of manufacturing or importing should be decided by the 
operation on the fiscal concerns of the country? or that a 
government, v^hose paramount duty it-is to protect the in- 
terests and to promote the prosperity of a nation, should 
for a moment prefer to have its wealth, to such an extent, 
drained away for the benefit of a foreign country, merely 
because it could draw a portion of the amount to the coffers 
ot the slate? That is to say, in order to simplify the 
business, can it be reconcilable to sound policy, to send 
15,000,000 of dollars to India and China, or elsewhere, to 
support the industry, the manufactures, and the agriculture 
of those countries, instead of retaining it at home for the 
advantage of our own citizens, merely because the treasury 
could raise three or four millions from the articles thus 
purchased! Whatever plea there might be for this system 
in countries whose immoderate debts, and enormous ex- 
penses require paramount attention to raising a large re- 
venue, it is wholly inapplicable in the United States, whose 
debts and expenses are comparatively light, and whose 
means of discharging them are so abundant. 

Any diminution of revenue, resulting from the imposi- 
tion of the duties necessary to protect national industry 
would only affect the question of the duration of the debt 
itself; that is, whether it shovild~be paid off in a greater or 
less period of time! It is, in a word, a question whether 
the nation shall pay off the debt, for instance, in ten, twelve, 
or lifteen years, and during that period feel the distress, 
embarrassment, and poverty which have never failed and 
never can fail to result from the neglect of protecting na- 
tional industry — or take twenty or twenty-five years to 
pay it off, and in the mean time enjoy the bounties, the 
blessings, the happiness which heaven has placed within its 
reach. We trust there never will be, certainly there never 
ou^ht to be, any hesitation in future on the choice. 

But we feel persuaded, that even confining our views to 
the mere secondary object of revenue, and utterly disre- 
garding all higher concerns, the low tariff has been impo- 
litic, which will appear manifest from the following consi- 
deration: 

It has encouraged extravagant importations, for a few 
years, whereby the revenue has, it is true, gained in pro- 



E7icourag67n€nt of Stnuggling. 73 

portion as the country has been impoverished. But that 
im/ioverishment^ and the ruin that sfireads far aJid ivide^ 
must necessarily firoduce a diminution of future importa^ 
tions firofcortioned to the past excess^ and has further 
produced the lamentable consequence of a diminution of 
the power of paying taxes 11 

The utter impolicy of depending almost wholly on the 
impost for a revenue, was so striking during the last war, 
and reduced the country to such a deplorable state in point 
of resources and finances, that sound wisdom enters a most 
solemn protest against the continuance of such a system. 
It brought the United States to the verge of destruction. 
On the commencement of the war, when our utmost en- 
ergies ought to have been called into immediate operation, 
the grand source of revenue was at once cut off, and in- 
valuable time was wasted in preparing a substitute. This 
most be the case in all future wars, from which the ex- 
perience of all mankind forbids us to hope for an exemption. 
Whereas, if manufactures were duly protected, they would 
bear, and the manufacturers would cheerfully pay, moderate 
duties; which in time of war might be enlarged as circum- 
stances would require. England, the most commercial 
nation in the world, derives only one-fifth part of her re- 
venues from customs. In 1793, her revenue was above 
sixty-three millions of pounds sterling, of which the cus- 
toms yielded not quite twelve.* 

The customs of the United States for the years 1807 and 
1808, were above thirty-two millions; whereas, in 1814, 
they were not six millions! thus this source of revenue, 
like a deceitful friend, deserted the nation completely in 
the hour of need; and, like a deceitful friend, whose faise« 
hood is fully proved, ought never to be implicitly relied on 
again, 

VII. Encouragement of S?nuggling, 

The refusal of adequate duties for the protection of the 
manufactures of the United States has been too generally 
defended, among other reasons, by the apprehension of af- 
fording encouragement to smuggling. This plea will not 
stand scrutiny. It is a remarkable fact, that the duties are 
higher on a variety of articles, not at present, nor likely 
to be, raised or manufactured in this country, than on those 
which interfere with or destroy our national industry. 

* Colquhoun on the Power and Resources of Great Britain, p. 25^., 

G 



74 



En eou rage merit of Sm uggling. 



In order to enable you, fellow citizens, to form a correct 
idea on this subject, and to appreciate the incorrectness of 
the plea, we annex a table of duties on sundry articles of 
both descriptions. 



ARTICLES. 


Prices.* 


Si)ecific 


Rate of duty 






duty. 


per cent. 




Cents. 


Cents. 




Imperial tea, per lb. 


65 a 67 


50 


80 


Hyson do. do. 


38 1-2 a 40 


28 


70 a 80 


Souchong do. do. 


20 a 35 


25 


70 a 125 


Madeira wine, per gallon 


260 


100 


40 


Sherry do. do. 


100 a 112 


60 


55 a 60 


Cinnamon, per lb 


40 


25 


60 


Cloves do. 


55 a 50 


25 


50 a 52 


Cotton fabrics 






27 1-2 


Wollen manufactures 






27 1-2 


On al! articles maHufactured of brass, ^ 








isteel, pewter, lead, or tin, brass wire, ! 








cutlery, pins, needles, buttons, earth- j 








ecware, pottery, porcelain, china, &c. J 






22 



It is painful to us to state, but regard to truth, and to the 
dearest interests of our country, oblige us to state, that we 
doubt whether the tariff of any country has ever exhibited 
more impolitic features than are to be seen in the above 
abstract. If the apprehension of encouraging smuggling 
by high duties had any influence in regulating the tariff, 
ought it not to have prevented the imposition of 80 per 
cent, on teas, 50 per cent, on wines, 60 per cent, on cinna- 
mon, and 50 per cent, on cloves? Is it not as easy to 
smuggle boxes of tea, as bales of cottons or woollens? 
Would it not have been as safe to impose a duty of 80 per 
cent, on the latter as the former? The want of sufficient 
protection of the national industry, which is so conspicuous 
throughout the tariff, cannot therefore for a moment be de- 
fended on the ground of afifirehension of fir omo ting smug- 
giing, which /ilea must be abandoned for ever. The utter- 
ly inadequate duty on woollen goods sealed the condemna- 
tion and destruction of more than half the merino sheep in 
the country, which cost above one million of dollars to our 
citizens; were beyond price; and ought to have been che- 
rished as * the a/i/ile of the eye,* 

Had the cotton and woollen manufactures been protected 
by the lowest rate of duties on the seven first articles, in 
the above list, the United States would probably have saved 
100,000,000 of dollars since the war, and would now exhi- 



Encouragement of Smuggling. 75 

hit a most enviable spectacle of prosperity. It rends the 
heart of every citizen possessed of public spirit to behold 
the melancholy and appalling contrast that at present per- 
vades the nation. 

The United States possess a capacity of raising, and wa- 
ter power and mechanical skill to manufacture, cotton to an 
extent commensurate with the demand probably of the 
whole world, and our means of securing a constant supply 
of wool are amply adequate. It will not, therefore, admit 
of a doubt, that by proper encouragement, in a few years, 
this nation might have fully supplied itself with cotton and 
woollen manufactures to the utmost extent of its wants; 
and yet, wonderful to tell, two-thirds of our cotton fabrics 
are brought from countries, from three to ten thousand 
miles distant — and one third of our woollens, three thousand. 

We wish it to be clearly and distinctly understood, that 
though these addresses appear to advocate exclusively the 
interests of the manufacturers, yet it is in appearance only. 
Our object is to promote the interests of the whole nation^ 
on the most extended scale. We scorn all partial views; 
and are convinced, that were every manufacturer in the 
United States in a prosperous situation, still sound policy 
v/ould require a radical revision of the tariff, in order to ar- 
rest the impoverishing drain of specie, resulting from an 
unfavourable balance of trade, and from the pernicious in- 
tercourse with India. The motive to our addresses is a 
clear and decided conviction that this nation can never be 
great, happy, or respectable, while ' it buys more than it 
sells^* as it has done ever since the war; while its treasures 
are lavished at a distance often thousand m.iles to purchase 
fabrics, with which it could abundantly supply itself; while 
it exports raw materials at thirty cents a pound, and receives 
the articles, manufactured of them at from one dollar to 
six or eight;* and while we suffer our machinery to go to 

* Two pieces of cambric, each containing twelve yards, weighed, 
the one two pounds one-eighth — the other, two pounds one- fourth. 
The first is sold in this city at one dollar, and the other at sixty-two 
and a half cents per yard. And there are much finer and higher 
priced cambrics than either — some at a dollar and a quarter, and 
:>ome at two dollars. Thus the cotton, which we sell raw from 
eighteen to fifty cents per pound, is returned to us, manufactured, 
at the rate of from two dollars to sev^en or eight — an advance of 
from six hundred to about eighteen hundred per cent! 



t6 Encouragement of Smuggling, 

ruin, consign our manufacturers to poverty, and furnisli 
employnient for the machinery and manufacturers of other 
countries. 

We shall conclude this address with a new view of this sub- 
ject which will appeaF extraordinary, but which, neverthe- 
less, we hope will not be rejected without due considera- 
tion. 

We are strongly inclined to believe, that such additional 
protection to the national industry, as would have consider- 
ably diminished our importations, would not only have res- 
sued this country from its present distress and embarrass- 
ment, and ensured it a high degree of happiness and pros- 
|5erity, but, extraordinary as it may appear, would have prov- 
e*d advantageous even to Great Britain. 

The value of a market depends not on the quantity of 
goods sold, but on the quantity paid for. And as the pre- 
sent paralysis of the national industry, and the impoverish- 
ment of the country, have chiefly arisen from our exces- 
sive importations and the want of adequate protection to 
our manufactures, by which many of them have received a 
sfevere, and some a deadly stroke; and, morever, as this im- 

We submit io the calm consideration of the reader, a calculation 
which cannot fail to astonish him. In 1816 we exported to Great 
Britain about fifty millions of pounds of cotton, which at thirty 
cents amounted to #15,000,000 



Supipose that we received only 15,000,000 of pounds 
manufactured, into cambrics and muslins, at the 
low average of 33 cents per yard, equal to two 
dollars per lb. it would amount to 30,000>000 

Being for 1 5,000,000 lbs. double the value of the 
whole raw material exported, exclusive of the 
surplus 35,000,000 of pounds of rav/ cotton, 
which at prime cost is 10,500,00(1 

40,500,000 
TIius leaving to Great Britain by this single 

tranaction, a gain of - - - - - 25,500,000 
What an appalling view of the policy of a nation, which has had 
the experience of all the world to guide its career! Is it wonder- 
ful, after reflecting on this and so many analogous features of our 
intercourse with foreign countries, that with advantages superior 
to those of any nation of ancient or modern times, we should be 
surrounded by embarrassments and difficulties, and that bank;- 
niptcy should staie us in the face' 



Encouragement of Smugglings Y7 

poverishment has reduced many of our importers to bank- 
ruptcy, and incapacitated a considerable proportion of the re- 
mainder from discharging their engagements at present; 
Ivhereby the merchants of Great Britain experience not only 
very great temporary disappointments and difficulties, but 
will ultimately suffer immense losses; it conclusively follows, 
that our impolitic tariff has injured Great Britain as well 
as the United States. 

Its injurious operation has been moreover greatly aided 
by a system pursued in Great Britain, which deserves ex* 
planation. 

That her policy on the subject of manufactures, trade, 
and commerce is generally very profound, is too obvious to 
require enforcement. Yet we are persuaded that she has 
in the case of this country very much mistaken her true 
interest. 

That the United States were her best customer, is be- 
yond doubt — and had the trade with us been conducted with 
care and caution, she would have derived vastly more bene- 
fit from it than she has done, or is ever likely to do. 

Our importers order as many goods as suit the con^ 
sumption of the country, and in general rather a supera- 
bundance. Had the supplies for this market been confined 
to goods thus ordered, the importers might have prosper- 
ed, and the debts been paid with tolerable punctuality. 
But it very frequently happens, that after an order is re- 
ceived from the United States, and filled, one, two, or three 
similar assortments are made up, shipped, consigned to an 
agent here, and sacrified at veiulue, at very reduced prices. 
The market is thus immoderately glutted, the prices of 
goods greatly reduced, the fair trader deeply injured, and 
sometimes absolutely ruined^ by those who receive his or- 
ders. 

Thus, independent of the heavy loss sustained by the sa- 
crifice of the goods sent on consignment, immense losses 
arise from the failure of those whose prospects in business 
are destroyed by this overtrading. 

It is, therefore, not improbable that the British mer- 
chants would receive nearly as large returns for two-thirds, 
perhaps for one half of the goods they export to this coun- 
try, as they do for the whole. By the policy at present 
pursued, they absolutely ruin their most valuable customers, 
and destroy their best market: and the recent accounts from 
England prove that many of them ruin themselves. The 

G 2 



78 Mncouragement of Smuggling. 

numerous bankruptcies in that country, it appears, are 
greatly owing to the failure of remittances from hence. 



NO. VL 

Philadeltihia^ May 15, 1819. 
The Society for the Promotion of National Industry, im- 
pressed with a belief that the calamitous situation of our 
agriculture, manufactures, trade, and commerce — the un- 
favourable balance of trade — the exhausting drain of specif 
— and the reduction of the prices of real estate, and of the 
grand staples of our country, require the exercise of the 
wisdom of the legislature of the United States to apply an 
early and efficient remedy, hope it will not be regarded as 
an undue interference, that they venture to submit to tho 
consideration of their fellow citizens throughout the union, 
the following form of a respectful application to the presi- 
dent, for an early call of congress. Should the measure be 
found necessary, it is of little consequence with whom it 
originates: should the contrary opinion prevail, the motive 
cannot fail, with all good men, to apologize for the sugges- 
tion. 

To the President of the United States, 
Sir, — The subscribers with all due respect, submit to youir 
most serious consideration, the following reasons on which 
they venture to suggest the propriety of convening an extra 
session of congress. 

Our agricultural productions, the great staples of our 
country, on which we relied to pay for our enormous impor- 
tations, and which, even at their highest rates, would have 
been inadequate for that purpose, are either excluded from 
foreign markets, or reduced in price from twenty-five to 
forty per cent, without any probability of a favourable 
change. 

Our markets are deluged with merchandize from foreign 
nations; while thousands of our citizens, able and willing 
to vvork, and capable of furnishing similar articles, are un- 
able to procure employment; our manufacturing establish- 
ments are generally in a languishing condition, and many of 
them, in which immense sums have been invested, wholly 



Encouragement of Stnuggiing, 79 

abandoned, whereby their proprietors, who placed reliance 
on the protection of government, are ruined. 

Our commerce is almost equally prostrate, and the ca- 
pital of the country, engaged in that useful branch, reduced, 
since the war, at least one-third, probably one-half. 

The balance of trade, in consequence of excessive im- 
portations, has been, and continues, most ruinously against 
us, whereby, after having remitted an immense amount of 
our government and bank stock in payment, which subjects 
the nation to a heavy, permanent annual tax — we have been 
and are alarmingly drained of our circulating medium, in 
consequence of which our monied institutions are impover- 
ished and crippled in their operations; agriculture, manu- 
factures, trade, and commerce paralized: and all classes of 
our citizens more or less injuriously affected in their pur- 
suits. 

Real estate has depreciated throughout the union from 
fifteen to tliirty-five per cent.; and in many cases fifty or 
sixty. 

The subscribers are impressed with a conviction, that for 
all these alarming evils there is no adequate remedy but a 
reduction of the amount of cur imports within that of our 
exports; it being undeniably true, that nations, like indi- 
viduals, which buy more than they sell^ or, in other words, 
expend beyond their income, must be reduced to bank- 
ruptcy. 

To depend on this salutary effect being produced by the 
restoration of the spirit of economy which is to result from 
general distress, or from the forbearance of our merchants 
to import, is to allow a violent fever to rage in the body 
politic, and exhaust itself, or the national strength, without 
the application of any remedy to arrest its destructive ca- 
reer. 

Even if our own merchants were to reduce their impor- 
tations within those bounds which our means of payment 
would require, this would afford no security: as our markets 
would probably continue to be, as they have been, inundated 
with goods consigned by foreign merchants, which would 
perpetuate the calamitous situation into which our country 
is plunged. 

A radical remedy to the evil, can only be applied by the 
legislature of the United States, in such a revision and re- 
gulation of the tariff, as shall reduce our importations, and 
e;{ftictualfy protect uatioiial industry » v 



80 ^Examination of the Maxim* 

In England, France, Gern)any, Russia and Prussia, and 
most other countries in Europe, national industry is ade- 
quately protected by prohibitions and heavy duties; where- 
as, while many of our agricultural productions, and almost 
all our manufactures, are excluded from nearly all the 
markets of the world; our markets are open to those of all 
other nations, under duties by no means affording sufficient 
protection; a case probably without example in the annals 
of mankind. 

We therefore respectfully pray that you will be please4 
to convene congress as early as circumstances may permit.* 



NO- VIL 

Philadelfihia, May 20/A, 1819. 

On almost every subject of discussion, fellow-citizend, 
there are certain hacknied phrases, which pass current as 
oracular, and though extremely fallacious, are received with 
scarcely any investigation. There is probably no science 
that has been more distorted in this respect than that of 
political economy, on which so mach of human happiness 
depends. 

We propose, in the present number, to consider a maxim 
«f this description, fraught with destruction to any nation by 
which it is adopted; but which is implicitly believed in by 
a large portion of our citizens, and has had considerable in- 
fluence on the legislature of the union* 

This specious maxim is, that 

'\ TRADE WILL REGULATE ITSELF," 
which, in ail probability, led to that refusal of adequate pro- 
tection to the national industry, which has overspread the 
nation with distress— lowered the price of some of our chief 
staples, by depriving them of a domestic market — bank- 
rupted so many of our merchants and traders — deprived 
so many thousands of our citizens of employment — and, in a 
word, reduced us from the most towering prospects to a 
most calamitous reverse. 

It will be perceived that this is a vital part of Adam 
Smith's doctrine — indeed, the basis on which he has raised 
his great superstructure; and that we have already animad- 

* To this memorial do attention whatever was paid, except by a 
feV printers of newspapers, who united in clamour against it. 



Examination of the Maxim. Bl 

verted on it incidentally. But its immense influence on the 
fate of nations, and its most destructive tendency, demand a 
more minute investigation, to which we now solicit your 
attention. 

How far its advocates deem it proper to have it carriedj 
we are not quite certain. In its stiict acceptation, it means 
a total exclusion of all regulations of commerce, so that the 
intercourse between nations should be as free as between 
different provinces of the same empire. In fact, if it does 
not mean this, it is difficult to define what it can mean; for 
if a government enacts any regulation whatever, it cannot 
with truth or justice be said, that '' tirade regulates itself,^' 
We shall, therefore, consider it in its utmost latitude, as 
excluding all regulations The result, however, would not 
be materially affected by any modification, or restriction of 
its provisions, short of effectual protection of national in- 
dustry. These would, as the case might be, only accelerate 
or procrastinate the final catastrophe, to which it infallibly 
leads. 

This maxim ought to have been consigned to oblivion 
centuries since, by the consideration that no trading or 
commercial nation has ever prospered without, " regulation 
of traded'' that those nations which have devoted the most 
scrupulous attention to its regulation, have been the most 
prosperous; and that in proportion as it has been neglected, 
just in the same proportion have nations gone to decay. 
The cases of England, France, Spain, and Portugal, offer 
powerful illustrations of these positions. But we shall not 
rest satisfied with this mode of defence. We shall trace 
the operation of the maxim in its full extent. 

As it would be nugatory to suppose that the existing re- 
gulations of commerce could, by any convention, be annulled, 
and its entire freedom be universally established, we shall 
merely suppose it adopted only by a portion of the commer- 
cial world, and see what would be its effects on those na- 
tions wherein it was carried into operation? 

To form an accurate idea on this or any other subject, the 
safest and best mode is to state the case on a small scale, 
which the mind can readily embrace without distraction, 
and thence to argue to the widest range to which the subject 
extends. 

We will, therefore, here confine our view to two nations, 
France and Spain, and suppose that in the latter country 
the maxim we combat is carried into full operation, and 



82 Examination of the Maxim. 

trade is allowed <' to regulate itself^* — but that in the for- 
mer, it is " regulated" by the government, for the protec- 
tion and encouragement of national industry, after the ex- 
ample of Great Britain, and indeed almost every other 
country in Christendom. 

In order to do the maxim justice, we will assume, that 
both nations are on a perfect equality in every other respect 
than the " regulation of trade '^ We will further assume 
that at the commencement of the rivalry between them, 
each nation possesses a circulating medium of 20,000,000 
of dollars, and has 200,000 people employed in the cotton, 
and as many in the woollen manufacture, who produce an- 
nually four millions of yards of each kind of goods, which 
are exactly adequate to their consumption. To simplify the 
discussion, we confine ourselves to tliose two branches. But 
the reasoning will equally apply to every other species of 
manufactures. 

4,000,00(>yards of cotton goods, say a 50 cents g 2,000,000 
4,000,000 ditto of woollen, a 6 dollars - - - 24,000,000 



On which they realize a profit of twelve and a 



26,000,000 



half per cent. - . - ^ - - - -8 3,250,000 



To the French manufacturers, according to our hypothe- 
sis, the home market is secured. All foreign competition 
is effectually cut off. They have, therefore, every encou- 
ragement to extend and improve their fabrics; and in the 
first year of rivalship, having a surplus on hand, they ex- 
port, we will suppose, 400,000 yards of each kind to Spain, 
and increase the exportation annually an equal amount. 
This operation produces the treble effect of lowering the 
price of the Spanish goods by the competition; circum- 
scribing their sale; and depriving, during the first year, 
about 40,000 people of employment. 

It being our determination to afford as little room for 
objection, as possible, we will suppose the reduction of price 
to be only seven and half per cent, which is far less than is 
usual in such cases.* Let us see the situation of the par- 
ties at the end of the 

* Instances have recently occurred of domestic goods being* re- 
duced at once, ten, fifteen, and twenty per cent, in our markets, In 
consequence of great quantities of similar articles suddenly intro^ 
duced from Europe. 



Examination of the Maxim ^ 83 

First year: 

The French manufacturers Whereas, the Spanish manu- 

gain in their domestic mar- facturers, whose sales are re- 

ket, as before - - - - 3,250,000 duced to 3,600,000 yards of 

And on 400,000 yards of each each kind, amounting to 23^, 

kind, scld in Spain, amount- 400,000, gain at 6 per cent. 

iugto 2,600,000, at 5 per only 

cent. 130,000 - - - Jl, 170,000* 

$3,380,000 



This is the operation in the very first year, producing a 
difference at once of about 2,300,000 dollars of actual pro- 
fit against the infatuated nation, which allows " trade to re- 
gulate itself,'* and, according to Adam Smith, buys where 
^' goods can be had the cheafiest,** The second year com- 
mences with increased energy on the part of the French, 
and dismay and discouragement on that of the Spanish ma- 
nufacturers. The former double their exportations, and 
send 800,000 yards into the rival markets, amounting to 
85,200,000, of which we trace the operation. 

Second year. 
French profit as before, on the Whereas the sales of the Span- 
home market - - - - 3,250,000 iards are reduced to 3,200, 
And on 800,000 yards of each 000 yards of each kind, 
il^ind sold in Spain, amounting amounting to 20,800,000, 
to 5,200,000, at 5 per cent. 260,000 on which they gain at 5 per 

cent. - - - |1, 040,000 

$3,510,000 « 



Third Year. 

French profit as before, on the The Spaniards find their sales 

home market - • - - 3,250,000 diminished to 2.^800,000 

They increase their exportation yards, amounting to 18, 

to 1,200,000 yards of each 200,000whereon they realize 

kind, amounting to 7,800, a profit of 5 per cent. 

000, at 5 per cent. • - - - 390,000 $910,000 



$3,640,000 



* This view of the effect of the rivalry has, we apprehend, almost 
wholly escaped the notice of our political economists. When the 
prices of our manufactures are reduced in the home market by fo- 
reig-Q competition, the reduction is on the whole we offer for sale. 
Whereas the reduction to the rival nation is only on such part of 
her's as she exports to us. The contest is therefore carried on at 
an immense inequality. 



34 



Examination of the Maxi?n\ 



Fourth Year. 



French profit at home, as before 
They increase their exportation 
to 1,600,000 yards of each 
kind, amounting to 10,400, 
GOO, which, at 6 per cent, 
affords a gain of 



3,250,000 The Spanish manufacturers are 
reduced to 2,400,000 yards 
of each kind, amounting to 
15,600,000, on which, at 
6 per cent, they gain 
520,000 $780,000 

$3,770,000 



It is, we trust, needless, to pursue the calculation any fur- 
ther. You can readily, fellow citizens, perceive that the 
contest must soon terminate. The Spanish manufacturers, 
oppressed, impoverished, and dispirited, would be soon 
driven from the market, which would be monopolized by 
the more sagacious nation, which, we repeat, had the good 
sense to " regulate trade,^^ Their immense gains would be 
at the expense, and to the destruction, of the nation, which 
was deluded by the specious maxim to " let trade regulate 
itself. ^^ The successful rivals would soon indemnify them- 
selves for the temporary reduction of price, by a propor- 
tionate advance in future. 

Let us compare the result of the four years operations on 
the two nations: — ■ 



France. 



First year's profit 
Second Year 
Third Year 
Fourth Year 



3,380,000 
3,510,000 
3,640,000 
3,770,000 

$14,300,000 



Sfiain. 



First Year's profit 
Second Year 
Third Year 
Fourth Year 



1,170,000 

1,040,000 

910,000 

780,000 

$8,900,000 



France, 
Six hundred thousand people in- 
(3ustriously employed, supporting 
themselves in comfort and happiness, 
«nd adding to the wealth and strength 
of the nation*. 



Effect on the loorking fieofile. 



Spain. 

Four hundred thousand people gra- 
dually thrown idle; — dragging on a 
wretched existence in mendicity; or 
looking in vain for those " collateral 
branches^'' which sound so harmoni- 
ously in Adam Smith, but which are 
not elsewhere to be found; or emigra- 
ting to France, to strengthen that na- 
tion at the expense of their own. 



* It is obvious that by the transfer of the manufactures from Spain 
to France, for every workman reduced to idleness in the former 
country, there would be one additional employed in the latter. We 
have, therefore, in the text assumed 600,000, as the a?era^e nurobep 
in France. 



jExamination of the Maxim. 85 

We have hitherto confined our calculations of the effects 
of this plausible but destructive system, to the manufactu- 
rers alone. Its pernicious consequences, if they extended no 
farther than to this class of citizens, would be sufficient to in- 
duce liberal minded men—- those worthy to legislate for this 
rising empire, to abandon the maxim. But those consequen- 
ces, how deplorable soever, are but as " mere dust in the 
balance'^ compared with its general effects on the wealth, 
strength, resources, power, and happiness of any devoted 
nation which enlists itself under the banners of Adam Smith. 

In the first year France sells to Spain to the 

amount of - - - . g 2,600,000 

In the Second - . - - - 5,200,000 

In the Third 7,800,000 

In the Fourth 10,400,000 



26,000,000 



This is a debt which, in the first place, drains all the me- 
tallic medium, as far as the merchants can collect It; and 
next all the evidences of public debt, or whatever valuable 
articles can be had. And still a heavy and oppressive debt 
is accruing from year to year afterwards! 

The result is easily seen. A prosperous nation, with a 
specie capital of g20,000,000, is by this simple process in 
four years reduced to a most abject, impoverished, and de- 
pendent state. Its wealth is drained away to support a 
foreign nation. Every species of industry is paraiized. 
Ships rot at the wharves. Trade languishes. Merchants 
and traders, as well as manufacturers, become bankrupts. 
Artisans, mechanics, and labouring people, who had large- 
ly contributed to the welfare of the state, are transformed 
into mendicants, or driven to desperate courses to prolong 
their existence; and desolation extends itself over the face 
of the land. 

This, iellow citizens, is very nearly our present case. It 
is true, we have not absolutely let ' trade regulate itself^' 
by a total absence of all duties. The necessities of the 
treasury, which by many members of congress were freely 
admitted to be the leading, and by some to be the only ob- 
ject of a tariff,* forbade the adoption of the maxim in its 

"^ We have already stated that Col. John Taylor^ a popular tv riter 
in Virginia, has taken the broad ground, that every dollar imposed 

H 



86 jExa?nination of the Maxim » 

fullest extent: and therefore our imported merchandize 
pays duty. But it is obvious that where the tariff of one 
nation is so wholly inefficient, that she can be completely 
undersold in her own markets by another, as the people of 
the United States are at present, the ultimate effect is ac- 
tually the same, as if ' trade were allowed to regulate itself* 
The duties imposed by our tariff have merely delayed, not 
averted, the work of destruction. But that it is as sure in 
its operation, is placed beyond the reach of doubt by the 
desolation and ruin that pervade so many invaluable manu* 
faciuring establishments throughout the union, on which 
millions of dollars have been expended, and whose fall, as 
we have so often repeated, and must re-echo in the ears of 
those who alone have the power of applying a remedy, in- 
volved the ruin of the citizens engaged in them. 

The most cursory reader must perceive, and no one 
possessed of candour can deny, that we have given the ad- 
vocates of the maxim, ' let trade regulate itself^ far more 
advantage in the argument than was necessary, or proper. 
When we stated the reduction of price at seven and a half 
per cent, and a gradual increase of exportation from 
France to Spain, of only ten per cent, of the amount origi- 
nally manufactured in each country, we did our cause ma- 
nifest injustice. We might have assumed at once a reduc- 
tion of price not of seven and a half per cent. — but of ten 
or more — and an exportation of double the amount, which, 
combined, would produce the immediate ruin of the Span- 
ish manufacturers, of whose fabrics a large proportion 
would remain on hand, and the residue be sold at or below 
cost.— This is and has ever been the uniform operation of 
the system of letting ' trade regulate itself* 

A physician who found his patient in a raging fever, and 
let the disorder take its course, or * reguUite itself would 
be deservedly reprobated as unworthy of his profession. 
But his conduct would not be more irrational than that of 
a statesman, who saw the agriculture, manufactures, trade, 
and commerce of his country going to decay, and let them 
' regulate themselves,* Government is instituted to guard 
the interests of the nation confided to its care: and by what- 

as duty on foreign rrierchandize, is a dollar robbed out of the pock- 
ets of the agriculturists! This maxim, admirably calculated to 
excite the selfish passions of one class of citizens against another, 
has unfortunately had too many proselytes in and out of congress. 



Striking case of Portugal. 87 

ever name it may be called, is no longer estimable than as 
it fulfils this sacred duty. It was painful to us to state in a 
former address — it is equally painful to us to repeat — but 
we must repeat the appalling truth, that our manufacturers, 
a large and important class, embracing some of the most 
valuable members of the community, must, with mixed 
sensations of regret and envy, regard the situation of the 
manufacturers of England, Denmark, France, Russia, 
Austria, and most other countries in Europe, who enjoy 
that protection from their governments which the former 
sought in vain from their fellow citizens and representa- 
tives, who are now themselves involved in the general dis- 
tress resulting from the want of that protection. 

We refer you, fellow citizens, to the plain, but impres- 
sive lesson afforded by the fable of the belly and the mem- 
bers. The latter starved the former to death — and perished 
victims of their own folly. We need not pursue it in de- 
tail. It is on the mind of almost every individual in the 
country, young and old. We cannot refrain from express- 
ing our fears, that posterity will pronounce our policy to 
be a full exemplification of the soundness of its moral, and 
of our destitution of those broad and liberal views, that re- 
gard with ' equal eye" all descriptions of society. 

It will probably be objected by those whose interests or 
prejudices enlist them in hostility to our views, that all we 
have here submitted to you, fellow citizens, is merely the- 
ory; that however plausible, it cannot be relied on in the 
regulation of the political economy of a great nation; that 
Adam Smith being the oracle of that science, no theory 
opposed to his should be received, at least without the sup- 
port of strong, and well-established facts. 

Well, we meet them, and are fairly at issue, on this 
ground — and are willing to stand or fall as we furnish this 
support to our theory. We offer an historical case which 
exemplifies the baleful consequences of a system exactly 
similar to ours m its features and operation — which blight- 
ed and blasted the happiness of a prosperous nation — and 
which pronounces a strong sentence of condemnation on 
the theory of Adam Smith. 

In the year 1681, Portugal established the woollen ma- 
nufacture on an extensive scale; and, by absolute prohibi- 
tions, excluded the woollen cloths of all other nations.— •In 
consequence she enjoyed a hi^ii r . tr? ee ol' provptrUv for 
above twenty years, and had the balance of trade in her 



88 Striking case of PortugaL 

favour universally. Fatally for her, in 1703, the British 
minister, Mr. Methuen, induced her to enter into a treaty, 
called by his name, which stipulated that she should never 
prohibit British woollen manufactures, provided Port wines 
were admitted into Great Britain at two-thirds of the duty 
paid on those of France. The agriculturists of Portugal 
deluded themselves into the opinion, that they should de- 
rive a double benefit from this regulation; secure a market 
for their wines, and buy their cloths at reduced prices; that 
is, according to the maxim of Adam Smith, buy where 
' they could be had the cheapest.^ But they were soon 
awakened out of this ' day dreamt The flourishing manu- 
facture was destroyed — the circulating medium of the 
country drained away — and the nation precipitated from the 
most flourishing state of prosperity to that pitiable situa- 
tion of poverty and debasement which holds her up to other 
nations as a beacon to shun the rocks whereon she ship- 
wrecked her resources and her happiness, and on which 
our political bark is at present striking with violence.* 

The important lesson held out by this case of Portugal — 
its close affinity to our situation — and the hope of its era- 
dicating prejudices destructive to the strength, happiness 
and independence of our country, induce us to give our 
authorities at full length. They are derived from two works 
of high character, ' the British Merchant,' written by a so- 

* These admonitory facts evince the unsoundness of the theory 
of Col. Taylor, as well as of many of the members of congress, 
who are his disciples and the zealous partizans of his doctrines. 
Regardless of the ruinous consequences to their fellow citizens 
who had embarked millions in manufacturing* establishments, they 
fondly persuaded themselves that by reducing" the duties as low as 
possible, consistently with the necessity of providing a revenue, 
which, we repeat, was their paramount object, they were consult- 
ing the interests of the agriculturists, who would thereby be ena- 
bled to purchase foreign merchandize at low prices, and whose pro- 
duce they believed always so certain of finding an advantageous 
market and high prices in Europe, that they might disregard the 
home market! Fatal delusion! Utter disregard of the sound 
systems and experience of all wise nations, and of the warning 
example of all unwise ones! They are now broad awake from those 
deceptions ' day dreams.' Their flour, excluded from the Euro- 
pean markets, has fallen from thirty to forty per cent; their cotton 
has suffered an equal depreciation; and their tobacco is reduced 
50 per cent. If liberality insures its own reward, illiberal policy 
never fails to carry its own punishment. 



Striking' case of Portugal, 89 

ciety of the most eminent merchants in England, in the 
reign of queen Anne; and ' Anderson on the means of excit- 
ing a spirit of National Industry.* 

' In the year 1681, one Courteen^ an Irishman, a servant 
in the family of the then queen of England, afterwards 
queen dowager, carried over several clothiers and bay- 
makers into Portugal, where they presently set up the 
manufactures, both of cloth and bays, particularly at Port 
Alegre and Covilhan. 

^ It was soon found that the staple of their wool was too 
short for bays; therefore their bay-makers were dismissed. 

' But they proceeded in their manufacture of cloth; and 
soon brought it to such perfection, that in 1684, either in 
June or July, upon the Conde df Ereicera^ s project to en- 
crease their exportations, and lessen the consumption of 
foreign manufactures, as well as to encourage their own, 
the king of Portugal made a sumptuary lav/ to restrain se- 
veral excesses in the kingdom; and, among the rest, the 
importation of all foreign woollen cloths ivas prohibited, 

' Upon this the foreign merchants in that country made 
several remonstrances; but could by no means obtain that 
the prohibition should be set aside: yet they gained a year's 
time to bring in those that were on the way, but were oblig- 
ed to reship whatever should arrive after the time limited. 

' The Portuguese soon became so expert in the manufac- 
ture of woollen cloths, that they sent home our English 
clothiers in a distressed condition; and the renegadoes Avere 
forced for some time to beg their bread.'* 

* The Portuguese went on successfully: their manufac- 
ture of woollen cloths increased to that degree, that both 
Portugal and Brazil were wholly supplied from their own 
fabrics: and the materials of this manufacture were their 
own and Spanish wool, and no other. 

, ' To make ourselves some amends, and to evade the ill 
consequences of this prohibition of our woollen cloths, we 
introduced into Portugal in their stead cloth-serges and 
cloth druggets; against which their fabric of cloth which 
was then but in its infancy^ would have been as unable to 
contend^ as against a free importation of our woollen cloths. 
Therefore^ that their own cloth might have no such thing 
as a rival in their own country^ they proceeded to prohibit 

* British Mercbatit, vol. III. p. 70. 
H 2 



90 Striking case of Portugal. 

foreign cloth-serges and cloth-druggets. This happened 
about one year after the first prohibition/* 

< Mr. Methuen's treaty, (l7(>3,) by taking off the prohi- 
bition of British cloths, and by pro\iding, that neither these, 
Ror any of the British woollen manufactures in Portugal, 
should hereafter be prohibited, was the immediate ruin of 
all the fabrics in that country.'^ 

' Our gain by the treaty, and so vast an enlargement of 
our exportations to Portugal, is, that we have saved vast 
sums of money, which otherwise might have gone out of 
the nation to pay our armies in Portugal and other coun- 
tries; and have greatly added to the treasure of the king' 
dom; that the balance annually due from Portugal has sub' 
sisted great numbers of our people^ emfiloyed in making 
manufactures to the -value of the balance, 

' The product of the lands is a considerable fictrt of every 
manufacture; the balance therefore due from Portugal has 
[laid great sums for the product of our lands; and our rents 
are nothing else but the value paid for the product of the 
lands; and consequently all that part of the Portugal balance 
which has been paid for the product of the lands^ is so much 
added to the rents of the kingdom. Yet this is not the whole 
profit the landed interest has received from this balance. 
The people that have been subsisted by that great over- 
balance of manufactures might otherwise have come very 
great numbers of them upon the parish; it is a gain to the 
landed iiUerest to be saved from this charge. Our gain 
then by our Portugal treaty .^ and our excess of exportations 
on that account^ is a vast increase of the nation^s treasure^ 
the employment and subsistence of great numbers of manU' 
facturing people^ an augmentation of our rents^ and the 
.saving the landed interest from the charge of maintaining 
Huch numbers of poor ^ as have subsisted themselves by the 
excess of exportations. ^ 

' The stipulation of the king of Portugal in this treaty, 
has helped us to ^^yO prodigious a vent for our woollen ma- 
nufactures in that country^ as has abundantly made up the 
loss of that babiice Ave heretofore received from Spain. '§ 

Previous to the Methuen treaty, Portugal coins were so 
rare in England, that they were almost regarded as medals. 

■ British Merchant, vol. iii. p. 71 . f Idem, ii. p. 76. 
f Idem, vol. iii. p. 254. k Idem, p. 38. 



Sinking case of Portugal, 91 

Whereas, after that treaty had taken effect, there was an 
annual balance in favour of England, of one million sterling^ 
or 4,444,000 dollars equal to 3 millions at present. Portu- 
gal was drained, as the United States are now, first of her 
silver, and then of her gold, so that she had, ' very little 
left Jor her necessary occasions,' This balance fully accounts 
for her impoverishment, and at that period was an immense 
sum, as will appear from the circumstance that the whole 
of the balance of trade in favour of England with all the 
world was then only /,2,000,000 — and her whole exports 
hardly /.7,000,000.* In consequence, the coins of Portu- 
gal flowed into Great Britain so abundantly, that she was 
not only enabled to pay her armies abroad with them — but 
they formed a considerable portion of the circulating me- 
dium of the nation— -and the chief part of the bullion melted 
and coined in her mint. 

* During the twenty years prohibition, the Portuguese 
succeeded so well in their woollen manufactures, that ive 
brought thence no gold or silver; but after the taking off that 
prohibition we brought away so much of their silver^ as to 
leave them very little for their necessary occasions; and then 
we began to bring away their gold,*^ 

< From that treaty's taking place, the balance of trade 
began to take place: and the year 1 703, was the first year 
we began to bring off the silver of that 7iation.^\ 

' The intent of the treaty was, to increase the consump- 
tion of our woollen cloths in Portugal; and has it not been 
increased by means of this treaty? had we any balance be- 
fore from Portugal and do we not now gain every year a 
million by that treaty?''^ 

' We never before the treaty had any armies to pay in 
Portugal; yet we brought none of their coin to our mint; not 
such a thing as a Portugal piece was seen in England; or 
if it was^ it was almost as great a cuiHosity as our me- 
dals,''^ 

* Our exports to Portugal since that treaty have amoun- 
ted to /.1, 300,000. per annum, and perhaps to a much 
greater sum.l 

< The payment of our arjnies^ the coinage in the mint^ the 
quantities of Portugal coin still current in the country^ are 

* Idem, vol. ii. p. 110. f Idem, vol. iii. p. 15. 
\ Idem, vol. ii. p. 35. } idem, vol. iii. p. 33 
!| Idem, vol, iii. p, 253. If Idem 20. 



92 Striking case of Portugal, 

so many demonstrations that we have exported vast quan- 
tities of woollen manufactures and other goods and mer- 
chandizes to that kingdom.*'* 

The analogy between the case of Portugal and that of 
the United States is strong and striking. The important 
woollen manufacture was established and brought to such 
perfection in four years in the former country, as not only 
to supply its own consumption but that of its colonies. In 
the course of three or four years it was completely des- 
troyed. 

' Thus did Portugal, by the spirited exertion of one 
able minister, (the Conde d'^Ereicera,) gain in a few years 
a perfect knowledge in a principal branch of the woollen 
manufacture; which they might have possessed, to the in- 
finite emolument of the poor subjects of his Faithful Ma- 
jesty till this hour, had not the nation^ by the death oj that 
patriotic nobleman^ lost her best counsellor^ and been over-- 
reached by the more able British minister^ Mr, Methuen.^ 

< Thusinfour years did their woollen manufactures attain 
to such fierfection^as to enable them to dispense with foreign 
cloths entirely.^^\ 

It may perhaps, be supposed that the total destruction of 
this flourishing manufacture, could not have taken place so 
rapidly unless the English woollen fabrics were admitted 
duty free. This would be an egregious error. The stipu- 
lation of the Methuen treaty was, that they should not be 
prohibited, nor be subject to a higher duty than before the 
prohibition had taken place. This was twenty-three per 
cent, which, like so many of the duties in the United States^ 
was found utterly inadequate to preserve the manufacture 
from destruction, 

« The duties of importation, before the prohibitions, had 
the name of twenty-three pfer cent. But the goods were 
undervalued; those duties of twenty -three per cents luere not 
above twelve per cent, of their real value. To such low duties 
has the king of Portugal obliged himself with respect to 
the several sorts of woollen manufactures, which stood be- 
fore prohibited in that country .''|| 

We invite your attention, fellow citizens, to the striking 
similarity between the case of Portugal, as stated above, and 

* Anderson on National Industry, p. 267. 
t Idem, p. 266. X Idem, 257. ._ 

11 British Merchant, iii. p. 37. 



Fallen state of American Manufactures. 93 

that of the United States. In this country, the woollen 
manufacture and that of cotton rose to maturity during the 
three years of warfare: and had the war continued two or 
three years more, or had they met with adequate protection 
after the peace, they would probably have attained to such 
maturity and taken such deep root, as to defy foreign com- 
petition. But the four years of peace have crushed a large 
portion of both descriptions. One of the most eminent 
merchants in Baltimore writes us — ' I am sorry to say, 
that our cotton manufactures are likely to fall through, un- 
less more effectually protected — English cotton goods ha-ve 
been selling at about half the cost and charges. Under such 
circumstances it is impossible for home manufactures to 
stand the competition.' A merchant in New-York like- 
wise writes — ^ The manufactures (of cotton particularly) 
will require ail the aid they can get from congress next 
session to sustain themselves. The enormous imports of 
foreign goods have so affected the price, that the cost can- 
not be obtained.' 

The preceding view of the enviable state of prosperity, 
and the rapid and lamentable downfall, of Portugal, de- 
mands the most pointed attention of every friend of the 
prosperity of this country. It is like the hand writing on 
the wall — the ' mene^ tekel^ ufiharsin^^-^xh^ warning to flee 
the road that is leading us to a similar state. Let these 
facts be carefully compared with the theory laid down in 
the commencement of this address, and they will afford 
the most irresistible proof of its soundness, as well as of 
the utter impolicy that has prevailed in the regulation of 
our tariff, which has done this country more injury in four 
years of peace than she suffered in both her wars. At the 
close of the last, she commenced her career under as favour- 
able auspices as any nation in the world — A high character at 
home and abroad — her merchants wealthy and prosperous 
— her manufactures flourishing — her people all employed 
— her staples of immense value. What a deplorable con- 
trast she exhibits at present! Who can reflect on it with- 
out agony! Her character impaired by the impracticability 
of her citizens paying their debts abroad — her merchants, 
one after another, daily swallowed up in bankruptcy — her 
manufactures prostrate — thousands and tens of thousands 
of her people unemployed — her staples sunk in value, 
probably more than 20,000,000 dollars per annum — and no 
prospect of relief at hand. If Adam Smith's work consisted 



94 Striking contrast, 

of twenty volumes instead of two— and if the comnnentaries 
on it had extended to two hundred, were Ihe whole thrown 
into one scale, and the single case of Portugal thrown into 
the other, the former would kick the beam. 

We conjure you, fellow citizens, by your regard for our 
common country — by the duty you owe yourselves, your 
wives, and your children — by the memory of your Wash- 
ington, Franklin, Hancock, and Adams — by the desire you 
must feel to arrest the progress of the depreciation of the 
grand staples of your agriculture, as well as the destruction 
of your manufactures, trade and commerce — all victims of 
a pernicious policy; by the claim posterity has on you to 
make a good use of the immense advantages you possess 
—by that liberty on which you justly pride yourselves, but 
which loses its value, if accompanied by bet^gary and ruin 
—in a word, by all you hold near or dear on earth — weigh 
well the subject of this address. Examine it in all its bear- 
ings and aspects. And should it satisfactorily establish, 
as we trust it will, the danger of the course you are pur- 
suing, arouse from the lethargy in which you are enthralled 
— and, as congress alone has the power of applying a reme- 
dy, memorialize your representatives to change their system 
—to follow the maxims of all the wise nations of ancient and 
modern times — to remove, as far as possible, the distresses 
of the nation — and to save from the vortex of bankruptcy 
those who have escaped the ravages of the storm which 
threatens to blast all our hopes of happiness, and to reduce 
us to the same state of prostration and decrepitude as Spain 
and Portugal, who, it is unfortunately true, have not made 
a worse use of the bounties of heaven than the United 
States! 

The immense importance of the case of Portugal, indu- 
ces us to place before the eyes of our fellow citizens two 
comparisons of her conduct with ours — in the one, the 
soundness of her policy places us in the back ground an 
entire century in point of political wisdom — in the other, 
her impolicy and her consequent sufferings and distress 
are the counterpart of the system we have pursued, and the 
calamities under which we writhe. 

Striking contrast. 
PORTUGAL. THE UNITED STATES 

* The Portuguese set up a fabric Prohibit nothing whatever — and 

df their own, and proceeded in it afford utterly inadequate protection 
with very good success, after the to the great and leading manufac- 
prohibition of ours and all foreign tures of cottons, woollens, and iron., 



Striking contrasts 



95 



coloured cloth. We had then no- 
thing left against their cloths, but 
to introduce our cloth serges and 
cloth druggets into that country. 
They quickly found that these gave 
some interruption to their manufac- 
tures, and therefore they proceeded 
also to prohibit foreign serges and 
druggets. ^^* 

Striking likeness. 



lest * the many should be taxed for 
the benefit of the few!!!^^ and in or- 
der to '' buy where goods could be had 
cheapest!!!'' 



PORTUGAL. 

* Before the treaty our woollen 
cloths, cloth serges and cloth drug- 
gets were prohibited in Portugal. 
They had set up fabrics there for 
making cloth, and proceeded with 
very good success: and we might 
justly apprehend they would have 
gone on to erect other fabrics, till at 
last they had served themselves with 
every species of woollen manufac- 
tures. The treaty takes otF all pro- 
hibitions, and obliges Portugal to ad- 
mit forever all our woollen manu- 
factures. Their own fabrics by thi'i 
were presently ruined. And we ex- 
ported 100,000/. value in the single 
article of cloths, the very year after 
the treaty."! 

* The court was pestered with re- 
monstrances from their manufactu- 
rers when the prohibition was taken 
off, pursuant to Mr, jhthuen's trea- 
ty. But the thing was past. The 
treaty ivas ratified: and THEIR 
LOOMS WERE ALL RUmED. 
And yet there was no tendency to a 
revolt, although so many people were 
deprived of their employment m that 
country by taking off the prohibi- 
tion. '| 

* The balance was so very great, 
that notwithstanding we paid subsi- 
dies to the king of Portugal, and 
paid for troops, (there were also vast 
supplies ofuur armies in Valencia 
and Catalonia,) yet still the overba- 
lance lay so much against them, that 
there was ten, twelve, and fifteen 
per cent, difference between the ex- 
change and the intrinsic value of the 
money. "§ 

* British Merchant, ^ol. iii p. 35. 
t British Merchant, vol. iii. p. 253. \ Idem, p. 75. J Idem, p. 91 



THE UNITED STATES. 

During the war, cotton, woollen, 
and other kinds of goods, were not, 
it is true, prohibited. There were, 
however, very few imported. The 
citizens of the United States set up 
fabrics for making cloth, both wool- 
len and cotton ; and, had the war 
continued, or had they received pro- 
tection after it was concluued, they 
would have gone on to erect other 
fabrics, till they had served them- 
selves with every species of manufac- 
ture The treaty of peace opened our 
ports to foreign merchandize, under 
duties utterly inadequate for protec- 
tion, whereby a large portion of our 
fabrics ivere wholly ruined — and, pro- 
bably within a year after the war 
135,000,000 of cottons and woollens 
imported into this country. 

Congress was most respectfully 
entreated for adequate protection, by 
the manufacturers, when the war 
was closed. It was refused: and the 
distress and ruin of the manufac- 
turers and the impoverishment of the 
nation followed. 



The balance of trade is so great, 
that notwithstanding we have ship- 
ped immense quantities of produce 
at higi; prices — and remitted proba- 
bly from about ^20,000,000 to 26, 
000,000 t)( government and bank 
stock, we are still heavily in debt, 
and unable to pay. 



96 State of Western Country, 

The following picture of the state of the western country, 
taken from the Frankfort Argus, evinces the insanity of 
not making some prompt and decisive effort to relieve 
the nation from its disastrous situation. 

" Never within the recollection of our oldest citizens has 
the aspect of times, as it respects property and money, been 
so alarming. Already has property been saciificed in con- 
siderable quantities, in this and the neighbouring counties, 
for less than half its value. We have but little money in cir- 
culation, and that little is daily diminishing by the universal 
calls of the banks. Neither lands, negroes, nor any other 
article can be sold for haif tueir vahie in cash; while exe- 
cutions, tu the amount of many hundred thousand dollars, 
are hanging over the heads of our citizens. What can be 
DONE? In a few months no dtibt can be paid, no money will 
be in circulation to answer tiie ordinary purposes of human 
life. Warrants, writs, and executions will be more abundant 
than bank notes: and the country will present a scene of 
scufflmg for the poor remnants oi" individual fortunes, which 
the world has not witnessed." 



NO. VIII. 

Philadelphia^ May 27, 1819. 
WHEN we first ventured, fellow citizens, to call your 
attention to the subject of political economy, we were influ- 
enced to adopt that measure, by the calamitous situation of 
our affairs, public and private. Agriculture had received a 
deep Avound by the reduction of the prices of its staple arti- 
cles from twenty to forty per cent. — real estate was reduced 
in the same proportion — navigation and commerce were 
languishing — manufactures were prostrated by an inordi- 
nate influx of foreign commodities, calculated to excite a 
spirit of luxury and extravagance in our citizens — the nar- 
row, illiberal, and selfish maxims, ' to buy where goods could 
be had the cheafiest^ and ' not to tax the many for the be- 
nefit ofthefem)^ had produced a system whereby the wealth 
of our ration was converted into a means of fostering and 
encouraging the industry of a distant hemisphere, and sup- 
porting foreign governments, while our own citizens were 
turned adrift for want of employment, and many of them re- 



Causes of existing distress, 97 

diiced to mendicity, and our country impoverished — we 
were involved in heavier debts than ever before, with dimin- 
ished means of payment — and the character of our country, 
from the inability of her merch^ints to pay their debts, and 
their frequent bankruptcy, was greatly impaired in the 
eyes of the world. In a word, under whatever aspect our 
affairs were viewed, they presented the most serious cause 
of uneasiness and apprehension. 

We looked around for the causes which, in the short 
space of four years, without war, famine, pestilence or fail- 
ure of any of the bounties of heaven, have reduced to this 
state from the pinnacle of reputation and happiness — a peo- 
ple justly celebrated for their enterprise, their industry, their 
mechanical skill, their wealth, and enjoying in the highest 
degree, every gift of heaven, in soil, climate, and extent of 
territory. 

Several causes, we found, had combined to produce this 
calamitous result. The prosperity of the country had en- 
gendered a spirit of extravagance — and the inordinate spirit 
of banking, carried in many cases to a most culpable excess, 
had done much mischief. But the great paramount evil, in 
comparison with which all tne rest sink into insignificance, 
is the immoderate extent of our importations, whereby we 
are involved in debts, for which our produce, at the highest 
prices, would have been inadequate to pay; and their great 
recent reduction, of course, increases our disabilities, Tlie 
evils arising from other sources would have gradually cured 
themselves — or involved in ruin only deluded parties. 
Whereas the loss of our industry, the dram of our specie, 
and the consequent impoverishment of our country, af- 
fect all classes of citizens, the economical and the extrava- 
gant — the labourer, the artisan, the cultivator of the soil, as 
well as the landholder, the manufacturer, the trader, and 
the merchant. 

On the most mature consideration we have given the sub- 
ject, we are persuad^that the only radical remedy for those 
evils is to limit the importation of such articles as we can 
manufacture ourselves, and thus foster our domestic indus- 
try. Other measures may be adopted to co-operate and aid 
in this great work. But without the grand restorative of 
^ buying less than we selly' which a proper tariff alone can 
effect, they will operate as mere palliatives of an evil whose 
immense extent and magnitude require prompt and deci- 
sive remedies. AH our efforts have been directed to con- 

i 



98 - JSTe^v Castle fires e fitment, 

vince our fellow citizens of this truth, so important to their 
virtue, their happiness, their iiidepcndence. 

We are, like other men, liable to error. We may have 
viewed the subject through an incorrect medium. But we 
declare, as we can with truth, that should we be mistaken — 
should any nian or body of men devise a better plan, we 
shall rejoice in the discovery, abandon our present views, 
and support theirs with all our ardour. We contend not for 
victory, which is no object in the discussion of such a mo- 
mentous question, involving the happiness or misery of mil- 
lions. We contend for the happiness of our citizens — and 
for the honour and prosperity of our beloved country. 

A document has just reached us, which does honour to the 
head and heart of the writer, as well as to the respectable 
body of citizens by whom it was adopted, and v^hich deserves 
the serious attention of our citizens throughout the union. 
It is the presentment of a late grand jury of Newcastle coun- 
ty, which points out with infallible certainty the road to pros- 
perity. We warmly recommend associations throughout the 
country to carry its salutary objects into operation, and thus 
arrest the impoverishment of our citizens. Should they be 
general-— should the plan proposed be faithfully adhered to, 
and the tariff* be properly modified — the thick clouds that 
environ our horizon will disappear — the sun of prosperity 
will again shine on us — we shall recover from our disas- 
trous situation — and only remember our sufferings to warn us 
to avoid the fatal source, a false and mistaken policy, from 
whence they burst forth on us with destructive violence. 

Delaware claims the high honour of having first adopted 
the federal constitution. It will be another just cause of 
pride, that she has taken the lead on this occasion, more 
particularly should the sound views she has given of the 
causes of cur distresses, and the excellent remedies she has 
prescribed, lead to their radical cure. 

Grand Inquest of J^ew castle county^ state of Delaware. 

The grand jury of Newcastle county beg leave to repre- 
sent — That they are deeply impressed with the distressed 
and calamitous situation of the agricultural, commercial, and 
manutacturing interests of the state; that in their opinion 
these evils have arisen from — 

I. A failure of crops.* 

^ The failure of crops has not prevailed in other parts of the Unit- 



Remarks on A. Hamilton's Refiort. 99 

II. An unfavourable balance of trade, the^ result of ex* 
cessive importations of foreign goods, exceeding, to an im- 
mense amount, the value of our exports; 

III. Thus draining the state of its specie, and circulating 
medium; 

IV. Depressing the value of real estate; and, 

V. Increasing poverty and distress. 

The only practicable remedies for these evils, in the opi- 
nion of the grand jury, are — 

I. A regular and strict economy iu the expenses of the 
people. 

II. A retrenchment in the use of imported goods, and 
foreign luxuries. 

III. A steady attention to the improvement of our agri^ 
cultural products. 

IV. ICF* ^nd the encouragement of a market at home^ by 
fostering and protecting Domestic Manufactures, 

To a serious consideration of this important subject, the 
Grand Jury would most earnestly invite the attention of the 
citizens, more especially of this county. 

Unanimously agreed to, and ordered to be printed. 

ARCHD- ALEXANDER, Foreman. 
Attest, S. H. BLACK, Clerk of G. J. 
\94h May, 1819. 



NO, IX. 

Philadelfi/iia^ June 3, 1819. 
In our preceding Addresses, fellow citizens, we have 
presented you with sketches of the policy of England, Rus- 
sia, Prussia, and Portugal — and displayed the wisdom and 
beneficial results of the system of the three first nations, 
and even of the last at one period of her history. We have 
shown, from authentic documents, the rapid destruction of 
the prosperity and happiness of Portugal, when she relaxed 
the system of protecting her national industry — whereby 
she was precipitated from a most flourishing situation, in 
two or three years, exactly as the United States have been, 
and in about the same space of time. We feel a confident 

ed States — but the distress from the other causes, is equally felt 
elsewhere. 



iOO Remarks on A, Hamilton's Refiort. 

hope, that those who have brought to the discussion that 
spirit of candour and impartiality, which is requisite to a 
correct decision, and which the importance of the subject 
demanded, have been convinced of the vital and radical er- 
rors in our system of policy. 

We now present to your view the essence of the Report 
of Alexander Hamilton, on the encouragement of National 
Manufactures, one of the most luminious and instructive 
public documents ever produced in this, or perhaps in any 
other country. It seems a complete body of political eco- 
nomy on the subject of national industry, and sheds a glare 
of light on this all important subject, that points out with 
unerring certainty, the course this nation should pursue. 
Happy would it have been, had the legislature of the union 
been guided by its dictates. We should then have made 
rapid advances in the career of prosperity which was open 
to us, and in which we were invited to proceed. But un- 
fortunately our whole system of political economy has been 
in hostility with the profound views developed in this valu- 
able report — and the United States now pay a heavy forfeit 
for the error of neglecting its sage counsels. 

There are circumstances attending it, which entitle it to 
most peculiar attention. Mr. Hamilton's habits and asso- 
ciations lay among the commercial part of the community, 
of which the great mass accorded with him in politics, and 
regarded him as their grand leader. The politics of the 
majority of the manufactuting interest were hostile to his. 
There was strong jealousy between them. Had he, there- 
fore, been unfriendly to manufactures, in order to foster 
and protect commerce, (according to the narrow views en- 
tertained by many of our citizens of the fancied hosiility 
between their interests) his politics might be suspected of 
producing an undue bias on his mind, and warping him to 
support an erroneous system. 

But when, in opposition to the dictates of his politics, he 
appeared the strenuous advocate of manufactures, as the 
grand means of promoting tlie happiness, the power, the 
greatness and independence of his country, it behoves those, 
who, in point of mind, are no more to compare with him, 
than a dwarf with " the man of Gathy* to weigh well the 
grounds of their opinions, and, once for all, consider, whe- 
ther they will continue the disciples of Adam Smith, to the 
utter rejection of whose theory in all its parts, his own coun- 
try owes her colossal power — or of Alexander Hamilton^ 



Extracts from A, Hamilton's Hejiort, 1*01 

advocating that system which has never failed to insure the 
prosperity and happiness of every nation, ancient or mo- 
dern, that has pursued it — that is, the protection of national 
industry; in other word^, whether they will continue to lead 
their country on " the road to ruin," under the banners of 
Adam Smith, or take the road to true independence under 
those of Alexander Hamilton. Light and darkness are not 
more opposite to each other, than Adam Smith and Alex- 
ander Hamilton on this point of political economy, so es- 
sential to insure " the wealth of nations,'* 

On the decision of this great question, depend the fu- 
ture destinies, not only of this country, but of a large por- 
tion of mankind, whose fortunes cannot fail to be deeply af- 
fected by the result of our experiment of free governments 
We, therefore, solemnly invoke the aid and co-operation 
of the wise and the good of every section of the union ia 
the dicussion of this all-important topic. 

Extracts from the Refiort of Alexander Hamilton^ Esquire^ 
Secretury of the Treasury ^ January ^ 1790. 

'^ The expediency of encouraging manufactures in the 
United States, which was, not long since, deemed very- 
questionable, appears at this time to be pretty generally ad- 
mitted. The embarrassments, which have obstructed the 
progress of our external trade, have led to serious reflec- 
tions on the necessity of eiilarging the sphere of our do- 
mestic commerce: the restrictive regulations^ which in 
foreign markets abridge the vent of the increasing surplus 
oj our agricultural produce^ serve to beget an earnest de^ 
sire^ that a more extensive demand for that surplus may be 
created at home. And the complete success which has re*- 
warded manufacturing enterprise, in some valuable branch- 
es, conspiring with the promising symptoms which attend 
some less mature essays in others, justify a hope, that the 
obstacles to the growth of this species of industry, are less 
formidable than they were apprehended to be; and that it 
is not difficult to find in its further extension, a full indem- 
nification for any external disadvantages, which are, or may 
be experienced, as well as an accession of resources fa- 
vourable to national independence and safety. 

" There still are, nevertheless, respectable patrons ^ 
opinions, unfriendly to the encouragement of manufatituref o 

22 



102 Extracts from A* Hamilton's Report. 

The following are, substantially, the arguments by which 
these opinions are defended: 

" In every country," say those who entertain them, "ag- 
riculture is the most beneficial and productive object of 
hun an industry. This position, generally, if not universally 
true, applies with peculiar emphasis to the United States, 
on account of their immense tracts of fertile territory, un- 
inhabited and unimproved. Nothing can afford so advanta- 
geous an employment for capital and labour, as the con- 
version of this extensive wilderness into cultivated farms. 
Nothing equally with this, can contribute to the population, 
strength, and real riches of the country. 

" To endeavour by the extraordinary patronage of go- 
vernment, to accelerate the growth of manufactures, is, in 
fact, to endeavour, by force and art, to transfer the natural 
current of industry, from a more to a less beneficial channel. 
Whatever has such a tendency must necessarily be un- 
wise: indeed it can hardly ever be wise in a government, 
to attempt to give a direction to the industry of its citizens. 
This, under the quick-sighted guidance of private interest, 
wiii, if left to itself, infallibly find its own way to the most 
profitable employment; and it is by such employment, that 
the public prosperity will be most effectually promoted. 
To leave industry to itself, therefore, is in almost every 
case, the soundest as well as the simplest policy. 

" This policy is not only recommended to the United 
States, by considerations which affect all nations; it is, in 
a manner, dictated to them by the imperious force of a 
very peculiar situation. The smallness of their population, 
compared with their territory — the constant allurements to 
emigration from the settled to the unsettled parts of the 
country — the facility with which the less independent con- 
dition of an artisan can be exchanged for the more inde- 
pendent condition of a farmer — these, and similar causes, 
cohspire to produce, and, for a length of lime, must con- 
tinue to occasion, a scarcity of hands for manufacturing oc- 
cupation, and dearness of labour, generally. To these dis- 
advantages for the prosecution of manufactures, a deficien- 
cy of pecuniary capital being added, the prospect of a suc- 
cessful conipetiiion with the manufacturers of Europe, 
must be regarded as little less than desperate. Extensive 
manufactures can only be the offspring of a redundant, at 
least of a full population. Till ti.e latter shall characterize 
the situation of this country, 'tis vain to hope for the for- 
men 



Extracts from A. Hamilton's Report, 103 

^* If, contrary to the natural course of things, an unsea- 
sonable and premature spring can be given to certain fa- 
brics, by heavy duties, prohibitions, bounties, or by other 
forced expedients; this will only be to sacrifice the interests 
of the community to those of particular classes. Besides 
the misdirection of labour, a virtual monopoly will be given 
to the persons employed on such fabrics; and an enhance- 
ment of price, the inevitable consequence of every mono- 
poly > must be defrayed at the expense of the other parts of 
the society. It is far preferable, that those persons should 
be engaged in the cultivation of the earth; and that we 
should procure, in exchange for its productions the com- 
modities, with which foreigners are able to supply us in 
greater perfection, and upon better terms." 

^* This mode of reasoning is founded upon facts and prin- 
ciples, which have certainly respectable pretensions. If it 
had governed the conduct of nations, more generally than 
it has done, there is room to suppose, that it might have 
carried them faster to prosperity and greatness, than they 
have attained by the pursuit of maxims too widely opposite. 
Most general theories, however, admit of numerous excep- 
tions; and there are few, if any, of the political kind, which 
do not blend a considerable portion of error with the truths 
they inculcate. 

" In order to an accurate judgment, how far that, which 
has been just stated, ought to be deemed liable to a similar 
imputation, it is necessary to advert carefully to the consi- 
derations which plead in favour ol manufactures, and which 
appear to recommend the special and positive encourage- 
ment of them, in certain cases, and under certain reasonable 
limitations. 

*' It ought readily to be conceded, that the cultivation of 
the earth, as the primary and most certain source of nation- 
al supply — as the immediate and chief source of subsis- 
tence to man — as the principal source of those materials 
which constitute the nutriment of other kinds ot labour—- 
as including a state most favourable to the freedom and in- 
dependence of the human mind — one, perhaps, most condu- 
cive to the multiplication of the human species — has intrin- 
sically a strong claim to pre-eminence over every other 
kind of industry. 

" But, thai it has a title to any thing like an exclusive 
predilection, in any country, ought to be admitted with great 
caution. That it is even more productive than every branch 



104 Extracts from A. Hamilton's Refiort. 

ef industry, requires more evidence than has yet been given 
in support of the position. That its real interests, precious 
and important as, without the help of exaggeration, they 
truly are, vi^ill be advanced^ rather than injured by the due 
encouragement of manufactures^ may ^ it is believed^ be satis^ 
factorily demonstrated. And it is also believed, that the ex- 
pediency of such encouragement, in a general view, may be 
shown to be recommended by the most cogent and persua- 
sive motives of national policy. 

" It has been maintained, that agriculture is not only the 
most productive, but the only productive species of indus- 
try. The reality of this suggestion, in either respect, has, 
however, not been verified by any accurate detail of facts 
and calculations; and the general arguments, which are ad- 
duced to prove it, are rather subtile and paradoxical, than 
solid or convincing. 

Those, which maintain its exclusive productiveness, are 
to this effect: 

" Labour, bestowed upon the cultivation of land, produces 
enough, not only to replace all the necessary expenses in- 
curred in the business, and to maintain the persons who 
are employed in it, but to afford, together with the ordinary 
profit on the slock or capital of the farmer, a net surplus, 
or rent for the landlord or proprietor of the soil. But the 
labour of artificers does nothing more than replace the 
stock which employs them, or which furnishes materials, 
tools, and wages, and yield the ordinary profit upon that 
stock. It yields nothing equivalent to the rent of land. 
Neither does it add any thing to the total value of the whole 
annual produce of the land and labour of the country. The 
additional value given to those parts of the produce of land, 
which are wrought into manufactures, is counterbalanced 
by the value of those other parts of that produce, which are 
consumed by the manufacturers. It can therefore only be 
by saving or parsimony, not by the. positive productiveness 
of their labour, that the classes of artificers can in any degree 
augment the revenue of the society.'^ 

" To this it has been answered, 

1. " That inasmuch as it is acknowledged, that manufac- 
turing labour reproduces a value equal to that which is ex- 
pended or consumed in carrying it on, and continues in ex- 
istence the original stock or capital employed, it ought, on 
that account alone, to escape bemg considered as wholly 
unproductive; that though it should be admitted, as alleged, 



Extracts from A, Hamilton's Refiort* 105 

that the consumplion of the produce of the soil, by the 
classes of artificers or manufacturers, is exactly equal to 
the value added by their labour to the materials upon which 
it is exerted; yet it would not thence follow, that it added 
nothing to the revenue of the society, or to the aggregate 
value of the annual produce of its land and labour. If the 
consumption, for any given period, amounted to a given 
sum, and the increased value of the produce manufactured, 
in the same period, to a like sum, the total amount of the 
consumption and production during that period, would be 
equal to the two sums, and consequently double the value 
of the agriculiural produce consumed. And though the in- 
crement of value, produced by the classes of artificers, 
should at no time exceed the value of the produce of the 
land consumed by them, yet there would be at every mo- 
ment, in consequence of their labour, a greater value of 
goods in the market, than would exist independent of it. 

2. <' That the position, that artificers can augment the 
revenue of a society, only by parsimony, is true in no other 
sense, than in one which is equally applicable to husband- 
men or cultivators. It may be alike affirmed of all these 
classes, that the fund acquired by their labour, and desrhied 
for their support, is not, in an ordinary way, more than equal 
to it. And hence it will follow, that augmentations of the 
wealth or capital of the community (except in the instances 
of some extraordinary dexterity or skill,) can only proceed, 
with respect to any of them, from the savings of the more 
thrifty and parsimonious. 

3. " That the annual produce of the land and labour of a 
country can only be increased, in two ways, by some im- 
provement in the productive powers of the useful labour, 
which actually exists within it, or by som.e increase in the 
quantity of such labour; that with regard to the first, the 
labour of artificers being capable of greater subdivision and 
simplicity of operation, than that of cultivators, it is suscep- 
tible, in a proportionably greater degree, of improvement 
in its productive powers, whether to be derived from an 
accession of skill, or from the application of ingenious 
machinery; in whicl> particular, ^lierefore, the labour em- 
ployed in the culture of land can pretend to no advuntage 
over that engaged in manufaciur-i s: tliat with regard to an 
avigmentation of the quantity of useful labour, this, ex- 
cluding adventitious circumstances, must depend essen- 
tially upon an increase of capital, which again must depend 

s 
K 



106 Extracts Jrom A, HamiltovPs Report, 

upon the savings made out of the revenues of those, who 
furnish or manage that, which is at any time employed, 
whether in agriculture, or in manufactures, or in any other 
way." 



" It is now proper to enumerate the principal circum- 
stances, from which it may be inferred — that manufacturing 
establishments not only occasion a fiositive augmeiitaiion of 
the produce and revenue of the society^ but that they con- 
tribute essentially to rendering them greater than they could 
possibly be^ without such establishments. These circum- 
stances are, 

1. ^^ The division of labour, 

2. " An extension of the use of machinery. 

3. " Additional employment to classes of the community 
not ordinarily engaged in the business. 

4. *' The promoting of emigration from foreign countries. 

5. " The furnishing greater scope for the diversity of ta- 
lents and dispositions which discriminate men from each 
other. 

6. " The affording a more ample and various field for en- 
terprise. 

7.'^ The creating, in some instances, a new, and securing, 
in all, a more certain and steady demand for the surplus 
produce of the soil. 

" Each of these circumstances has a considerable influence 
upon the total mass of industrious effort in a community: 
together, they add to it a degree of energy and effect, which 
are not easily conceived. Some comments upon each of 
them, in the order in which they have been stated, may serve 
to explain their importance. 

I. '' As to the division of labour. 

"It has been justly observed, that there is scarcely any 
thing of greater moment in the economy of a nation, than 
the proper division of labour. The separation of occupa- 
tions causes each to be carried to a much greater perfection 
than it could possibly acquire, if they were blended. This 
arises principally from three circumstances: — 

1st. ^' The greater skill and dexterity naturally resulting 
from a constant and undivided application to a single object. 
It is evident, that these properties must increase, in pro- 
portion to the separation and simplification of objects and 
the steadiness of the attention devoted to each; and must be 
less, in proportion to the complication of objects, and the 
number among^ which the attention is distracted. 



Extracts from A. HamiUori^s Rejiort, 107 

2d. " The economy of time, by avoiding the loss of it, inci- 
dent to a frequent transition from one operation to another, 
of a different nature. This depends on various circum- 
stances; the transition itself — the orderly disposition of the 
implements, machines, and materials employed in the ope- 
ration to be relinquished — the preparatory steps to the com- 
mencement of a new one — the interruption of the impulse, 
which the mind of the workman acquires, from being en- 
gaged in a particular operation — -the distractions, hesitations, 
and reluctances, which attend the passage from one kind of 
business to another. 

3d. '^ An extension of the use of machinery. A man oc- 
cupied on a single object, will have it more in his power, 
and will be more naturally led to exert his imagination in 
devising methods to facilitate and abridge labour, than if he 
were perplexed by a variety of independent and dissimilar 
operations. Besides this, the fabrication of machines, in 
numerous instances, becoming itself a distinct trade, the 
artist, who follows it, has all the advantages which have been 
enumerated, for improvement in this particular art; and in 
both ways the invention and application of machinery are 
extended. 

" And from these causes united, the mere separation of 
the occupation of the cultivator, from that of the artificer, 
has the effect of augmenting the productive powers of la- 
bour, and with them, the total mass of the produce or re- 
venue of a country. In this view of the subject, therefore, 
the utility of artificers or manufacturers, towards promoting 
an increase of productive industry, is apparent. 

II. " As to an extension of the use of machinery, a point 
which, though partly anticipated, requires to be placed in 
one or two additional lights. 

" The employment of machinery forms an item of great 
importance in the general mass of national industry. 'Tis 
an artificial force brought in aid of the natural force of man; 
and, to all the purpose of labour, is an increase of hands; an 
accession of strength, unincumbered too by the expense of 
maintaining the labourer. May it not therefore be fairly 
inferred, that those occupations which give greatest scope 
to the use of this auxiliary, contribute most to the general 
stock of industrious effort, and, in consequence, to the ge- 
neral product of industry? 

" It shall be taken for granted, and the truth of the posi- 
tion referred to observation, that manufacturing pursuits 



108 Extracts from A, Hamilton's Refiorh 

are susceptible in a greater degree of the application of nia- 
chinery, than those of agriculture. If so, all the difference is 
lost to a community, which, instead of manufacturing for 
itself, procures the fabrics requisite to its supply from other 
coimtries. The substitution of foreign for domestic manu- 
facturesis a transfer to foreign nations of the advantages 
accruing from the emfiloymsnt of machinery in the modcfi in 
which it is cafiable of being em/iloyedj with most utility and to 
the greatest extent, 

" The cotton-mill invented in England, within the last 
twenty years, is a signal illustration of the general proposi- 
tion, which has been just advanced. In consequence of it, 
all the different processes for spinning cotton are performed 
by means of machines, which are put in motion by water, 
and attended chiefly by women and children; and by a smaller 
number of persons, in the whole, than are requisite in the 
ordinary mode of spinning. And it is an advantage of great 
moment, that the operations of the mill continue with con- 
venience, during the night, as well as through the day. The 
prodigious effect of such a machine is easily conceived. To 
this invention is to be attributed essentially the immense 
progress, vviiich iias been so suddenly made in Great Bri- 
tain, in tl;e various fabrics of cotton. 

111. *' As to the additional employment of classes of the 
community, not origmally engaged in the particular busi- 
ness. 

" This is not among the least valuable of the means by 
which manufacturing institutions contribute to augment the 
genera) stock of industry and production. In places where 
those institutions prevail, besides the persons regularly en- 
gaged in them, they afford occasional and extra employ- 
ment to indu.-itrious individuals and families, who are wil- 
ling to devote the leisure resulting from the intermissions 
of their ordinary pursuits to collateral labours, as a resource 
for multiplying their acquisitions or their enjoyments. The 
husbandman himself ex heriences a new ftource offirofit and 
sufifiortfrom the increased industry of his wife and daugh- 
ters; invited and stimulated by the demands of the neigh- 
bouring manufactories, 

'^ Besides this advantage of occasional employment to 
classes having different occupations, there is anoi her of a 
nature allied to it, and of a similar tendency. This is, the 
employment of persons who would otherwise be idle (and, 
in many cases, a burden on the community) either from the 



Extracts from A. Hamilton's Refiort. 10*? 

bias of temper, habit, infirmity of body, or some other cause, 
indisposing or disqualifying ihem for the toils of the coun- 
try. It is worthy of particular remark, that, in general, 
women and children are rendered more useful, and the lat- 
ter more early useful, by manufacturing establishments, 
than they would otherwise be. Of the number of persons 
employed in the cotton manufactories of Great Britain, it is 
computed Xhdii four-sevenths nearly are women and children; 
of whom the greatest firofiortion are children^ and many of 
them of a tender age, 

" And thus it appears to be one of the attributes of manu- 
factures, and one of no small consequence, to give occasion 
to the exertion of a greater quantity of industry, even by the 
same number of persons, where they happen to prevail, 
than would exist, if there were no such establishments. 

IV. '* As to the promoting of emigration from foreign 
countries. 

" Men reluctantly quit one course of occupation and live- 
lihood for another, unless invited to it by very apparent and 
proximate advantages. Many who would go from one 
country to another, if they had a prospect of continuing with 
more benefit, the callings to which they have been educa- 
ted, will not often be tempted to change their situation by 
the hope of doing better in some other way. Manufactu- 
rers, who (listening to the powerful invitation of a better 
price for their fabrics, or for their labour; of greater cheap- 
ness of provisions and raw materials; of an exemption from 
the chief part of the taxes, burdens and restraints, which 
they endure in the old world; of greater personal indepen- 
dence and consequence, under the operation of a more equal 
government; and of what is far more precious than mere 
religious toleration, a perfect equality of religious privile- 
ges) would probably flock from Europe to the United States 
to pursue their trades or professions, if they were once 
made sensible of the advantages they would enjoy, and were 
inspired with an assurance of encouragement and employ- 
ment; will with difficulty, be induced to transplant them- 
selves, with a view of becoming cultivators of land. 

" If it be true, then, that it is the mterest of the United 
States to open every possible avenue to emigration from 
abroad, it affords a weighty argument for the encourage- 
ment of manufactures; which, for the reason just assigned, 
will have the strongest tendency to multiply the induce- 
ments to it. 

K 



1 10 Extracts from A, Hamilton's Report. 

« Here is perceived an important resource, not only for ex- 
tending the population, and with it the useful and produc- 
tive labour of the country, but likewise for the prosecution 
of manufactures, without deducting from the number of 
hands which might otherwise be drawn to tillage; and even 
for the indemnification of agriculture for such as might hap- 
pen to be diverted from it. Many whom manufacturing 
views w^ould induce to emigrate, would afterwards yield to 
the tempiations, which the particular situation of this coun- 
try holds out to agricultural pursuits. And while agriculture 
would in other respects derive many signal and unmingled 
advantages, from the growth of manufactures, it is a pro- 
blem, whether it would gain or lose, as to the article of the 
number of persons employed in carrying it on. 

V. " As to the furnishing greater scope for the diversity 
of talents and dispositions, which discriminate men from 
each other. 

^' This is a much more powerful mean of augmenting the 
fund of national industry than may at first sight appear. It 
is a just observation, that minds, of the strongest and most 
active powers for their proper objects, fall below mediocri- 
ty, and labour without effect, if confined to uncongenial pur- 
suits. And it is thence to be inferred, that the result of hu- 
man exertion may be immensely increased by diversifying 
its objects. When all the different kinds of industry obtain 
in a community, each individual can find his proper ele- 
ment, and call into activity the whole vigour of his nature. 
And the community is benefitted by the services of its re- 
spective members, in the manner, in which each can serve 
it with most effect. 

" If there be any thing in a remark often to be met with, 
namely, that there is in the genius of the people of this 
country a peculiar aptitude for mechanical improvements, it 
would operate as a forcible reason for giving opportunities 
to the exercise of that species of talent, by the propagation of 
manufactures. 

VI. " As to the affording a more ample and various field 
for enterprise. 

" This also is of greater consequence in the general scale 
of national exertion, than might perhaps on a superficial 
view be supposed, and has effects not altogether dissimilar 
from those of the circumstance last noticed. To cherish and 
stimulate the activity of the human mind by multiplying the 
objects of enterprise, is not among the least considerable of 



Extracts from ji, Hamilton's Report, 111 

the expedients, by which the wealth of a nation may be pro- 
moted. Even things, in themselves not positively advantage- 
«us, sometimes become so, by their tendency to provoke ex- 
ertion. Every new scene which is opened to the busy nature 
of man to rouse and exert itself, is the addition of a new en- 
ergy to the general stock of effort. 

" The spirit of enterprise, useful and prolific as it is, must 
necessarily be contracted or expanded in proportion to the 
simplicity or variety of the occupations and productions 
which are to be found in a society. It must be less in a nation 
of mere cultivators, than in a nation of cultivators and mer- 
chants; less in a nation of cultivators and merchants, than in a 
nation of cuhivators, artificers and merchants. 

VII. " As to the creating, in some instances, a new, and 
securing in all a more certain and steady demand for the 
surplus produce of the soil. 

" This is among the most important of the circumstances 
which have been indicated. It is a principal mean, by which 
the establishment of manufactures contributes to an augmen- 
tation of the produce or revenue of a country, and has an im- 
mediate and direct relation to the prosperity of agriculture. 

" It is evident, that the exertions of the husbandman will 
be steady or fluctuating, vigorous or feeble, in proportion to 
the steadiness or fluctuation, adequateness, or inadequate- 
ness of the markets on which he must depend, for the vent 
of the surplus, which may be produced by his labour; and 
that such surplus, in the ordinary course of things, will be 
greater or less in the same proportion. 

" For the purpose of this vent, a domestic market is great- 
ly to be preferred to a foreign one; because it is, in the na- 
ture of things, far more to be relied on. 

" It is a primary object of the policy of nations, to be able 
to supply themselves with subsistence from their own soils; 
and manufacturing nations, as far as circumstances permit, 
endeavour to procure from the same source, the raw mate- 
rials necessary for their own fabrics. This disposition, urged 
by the spirit of monopoly, is sometimes even carried to an 
injudicious extreme. It seems not always to be recollected, 
that nations which have neither mines nor manufactures, can 
only obtain the manufactured articles of which they stand in 
need, by an exchange of the products of their soils; and that 
if those who can best furnish them with such articles, are 
unwilling to give a due course to this exchange, they must 
of necessity make every possible effort to manufacture lor 



il2 JExtr acta from A, Hamilton's Refiort. 

thenasjelves; the effect of which is, that the manufacturing 
nations abridge the natural advantages of their situation 
through an unnvillingness to fiermit the agricultural countries 
to enjoy the advantages of theirs; and sacrifice the interest 
of a mutually beneficial intercourse to the vain project of 
selling every thing and buying nothing. 

" But it IS also a consequence of the policy, which has been 
noted, that the foreign demand for the products of agricul- 
tural countries, is in a great degree rather casual and occasion- 
al^ than certain or constant. To what extent injurious inter- 
ruptions of the demand for some of the staple commodities 
of the United States, may have been experienced, from that 
cause, must be referred to the judgment of those who are 
engaged in carrying on the commerce of the country: but it 
may be safely affirmed, that such interruptions are at times 
very inconveniently felt, and that cases not unfrequently oc- 
cur, in which markets are so confined and restricted, as to 
render the demand very unequal to the supply. 

*' Independently likewise of the artificial impediments, 
which are created by the policy in question, there are na- 
tural causes tending to render the external demand for the 
surplus of agricultural nations a firecarious reliance. The 
differences of seasons in the countries which are the consu- 
mers, make immense differences in the produce of their 
own soils, in different years, and consequently in the degrees 
of their necessity for foreign supply. Plentiful harvests with 
them, especially if similar ones occur at the same time in 
the countries which are the furnishers, occasion of course a 
glut in the markets of the latter. 

" Considering how fast and how much the progress of 
new settlements in the United States must increase the sur- 
plus produce of the soil, and weighing seriously the tenden- 
cy of the system, which prevails among most of the com- 
mercial nations of Europe, whatever dependence may be 
placed on the force of natural circumstances to counteract 
the effects of an artificial policy; there afifiear strong rea- 
sons to regard the foreign demand for that surfilus^ as too 
uncertain a reliance^ and to desire a substitute for it in an 
ejotensive domestic market, 

" To secure such a market, there is no other exfiedient^ 
than to firomote manufacturing establishments. Manufac- 
turers, who constitute the most numerous class, after the 
cultivators of land, are for that reason the principal consu- 
mers of the surplus of their labour. 



Extracts from A, Hamiltori^s Refiort, 113 

'* This idea of an extensive domestic market for the sur- 
plus produce of the soil, is of the first consequence. It is, of 
ail things, that which most effectually conduces to a flourish- 
ing state of agriculture. If the effect of manufactories should 
be to detach a portion of the hands, which would otherwise 
be engaged in tillage, it might possibly cause a smaller 
quantity of lands to be under cultivation; but by their ten- 
dency to procure a more certain demand for the surplus 
produce of the soil, they would, at the same time, cause the 
lands, which were in cultivation, to be better improved and 
more productive. And while, by their influence, the condi- 
tion of each individual farmer would be meliorated, the total 
mass of agricultural production would probably be increas- 
ed. For this must evidently depend as much, if not more up- 
on the degree of improvement, than upon the number of 
acres under culture. 

« It merits particular observation, that the inultifilicatioji 
of manufactories not only furnishes a market for those articles 
which have been accustomed to be firoducedin abundance^in 
a country; but it likewise creates a demand for such as were 
either unknown or produced in inconsiderable quantities. 
The bowels, as well as the surface of the earth, are ran- 
sacked for articles which were before neglected. Animals, 
plants, and minerals acquire a utility and value, which were 
before unexplored. 

" The foregoing considerations seem sufficient to estab- 
lish as general propositions, that it is the interest of nations 
to diversify the industrious pursuits of the individuals who 
compose them — that the est ablishinent of manufactures is 
calculated not only to increase the general stock of useful and 
productive labour^ but even to improve the state of agricul- 
ture in particular^ certainly to advance the interests of 
those who are engaged in it. There are other views, that 
will be hereafter taken of the subject, which, it is conceived* 
will serve to confirm these inferences. 

1. '* If the system of perfect liberty to industry and com- 
merce were the prevaiUng system of nations, the arguments 
which dissuade a country in the predicament of the United 
States, from the zealous pursuit of manufactures would 
doubtless have great force. It will not be affirmed, that they 
might not.be permitted, with few exceptions, to serve as a 
rule of national conduct. In such a state of things, each 
country wou»d have the full benefit of its peculiar advanta- 
ges, to compensate for its deficiencies or disadvantages. If 

K 2 



^14 Extracts from A, Hamilton'^ s Re fiort, 

one nation were in a condition to supply manufactured ar- 
ticles on better terms than another, that other might find an 
abundant indemnification in a superior capacity to furnish 
the produce of the soil. And a free exchange, mutually be- 
neficial, of the commodities which each was able to supply, 
on the best terms, might be carried on between them, sup- 
porting in full vigour the industry of each. And though the 
circumstances which have been mentioned, and others which 
will be unfolded hereafter, render it probable, that nations 
merely agricultural, would not enjoy the same degree of 
opulence, in proportion to their numbers, as those which 
united manufactures with agriculture; yet the progressive 
improvement of the lands of the former, might, in the end, 
atone for an inferior degree of opulence in the meantime; 
and in a case in which opposite considerations are pretty 
equally balanced, the option ought perhaps always to be in 
favour of leaving industry to its own direction. But the sys- 
tem, which has been mentioned, is far from characterising 
the general policy of nations. The prevalent one has been 
regulated by an opposite spirit. The consequence of it is, 
that the United States are to a certain extent, in the situa- 
tsion of a country precluded from foreign commerce. They 
can indeed, without difficulty, obtain from abroad the manu- 
factured supplies, of which they are in v^ant; but they ex^ 
perience numerous and very injurious impediments to the 
emission and vent of their own commodities. Nor is this the 
case in reference to a single foreign nation only. The regu- 
lations of several countries, with which we have the most 
extensive intercourse, throw serious obstructions in the way 
of the principal staples of the United States. In such a fio- 
sition of things^ the United States cannot exchange with Eu^ 
rofie on equal terms; and the want ofrecifirocity would ren- 
der them the victim of a syste7n^ which should induce them to 
confine their views to agriculture^ and refrain from manufac- 
tures, A constant and increasing necessity, on their part, for 
the commodities of Europe, and only a partial and occasional 
demand for their own, in return, could not but expose thtm 
to a state of impoverishment, compared with the opulence 
to which their p(»Iitical and natural advantages authorize 
them to aspire. Remarks of this kind are not made in the 
spirit of complaint. It is for the nations, whose regulations 
are alluded to, to judge for themselves, whether, by aiming 
at too much, they do not lose more than they gain. It is for 
the United States to consider by what means they can reixr 



Extracts from A, Hamilton's Refiort, 1 15 

der themselves least dependent, on the combinations, right 
or wrong, of foreign policy. It is no small consolation that 
already the measures which have embarrassed our trade, 
have accelerated internal improvements, which upon the 
whole have bettered our affairs. 

" To diversify and extend these improvements, is the 
surest and safest method of indemnifying ourselves for any 
inconveniences, which those or similar measures have a ten- 
dency to beget. If Eurofie will not take from us the firo- 
ducts of our soily ufion terms consistent with our interest^ the 
natural remedy is to contract as fast as possible^ our wants 
of her, 

2. " The conversion of their waste into cultivated lands, 
is certainly a point of great moment in the political calcula- 
tions of the United States. But the degree in which this may 
possibly be retarded by the encouragement of manufacto- 
ries, does not appear to countervail the powerful induce- 
ments to affording that encouragement. 

" An observation made in another place, is of a nature to 
have great influence upon this question — If it cannot be de- 
nied, that the interests even of agriculture may be advanced 
more by having such of the lands of a state as are occupied, 
under good cultivation, than by having a greater quantity 
occupied under a much inferior cultivation; and if manufac- 
tories, for the reasons assigned, must be admitted to have a 
tendency to promote a more steady and vigorous cultivation 
of the lands occupied, than would happen without them, it 
will follow, that ihey are capable of indemnifying a country 
for a diminution of the progress of new settlements; and 
may serve to increase both the capital value and the income 
of its lands, even though they should abridge the number of 
acres under tillage. But it does by no means follow, that 
the progress of new settlements would be retarded by the 
extension of manufactures. The desire of being an indepen- 
dent proprietor of land, is founded on such strong principles 
in the human breast, that where the opportunity of becom- 
ing so is as great as it is in the United States, the proportion 
will be small of those, whose situations would otherwise 
lead to it, who would be diverted from it towards manufac- 
tures. And it is highly probable, as already intimated, that 
the accession of foreigners, who, originally drawn over by 
manufacturing views, would afterwards abandon them for 
agricultural, would be more than an equivalent for those of 
our citizens, who might happen to be detatched from them. 



il^ Extracts fro7n A, Hamilton's Reliort, 

" The remaining objections to a particular encouragement 
of manufactures in the United States now require to be 
examined. 

" One of these turns on the proposition, that industry, if 
left to itself, will naturally find its way to the most useful 
and profitable employment. Whence it is inferred, that 
manufactures, without the aid of government, will grow up 
as soon, and as fast, as the natural state of things, and the 
interest of the community, may require. 

" Against the solidity of this hypothesis, in the full latitude 
of the terms, very cogent reasoning may be offered. These 
have relation to the strong influence of habit, and the spirit 
of imitation; the fear of want of success in untried enter- 
prises; the intrinsic difficulties incident to first essays to- 
wards a competition with those who have previously attain- 
ed to perfection in the business to be attempted; the boun- 
ties, premiums, and other artificial encouragements, with 
which foreign nations second the exertions of their citizens, 
in the branches in which they are to be rivalled. 

" Experience teaches, that men are often so much gover- 
ned by what they are accustomed to see and practise, that 
the simplest and most obvious improvements, in the most 
ordinary occupations, are adopted with hesitation, reluc- 
tance, and by slow gradations. The superiority antecedently 
enjoyed by nations, who have pre-occupied and perfected a 
branch of industry, constitutes a more formidable obstacle, 
than either of those which have been mentioned, to the m- 
troduction of the same branch into a country, in which it did 
not before exist. To maintain between the recent establish" 
mentfi of one country^ and the long-matured establishments of 
another country^ a comfietition ufion equal termsy both as to 
quality and firicc^ is in most cases imfirac tic able. The dispa- 
rity, in the one, or in the other, or in both, must necessarily 
be so considerable as to forbid a successful rivalshjp, without 
the extraordinary aid and firotection of government, 

" But the greatest obstacle of all to the successful prose- 
cution of a new branch of industry in a country in which it 
was before unknown, consists, as far as the instances apply, 
in the bounties, premiufiis, and other aids, which are granted 
in a variety of cases, by the nations in which the establish- 
ments to be imitated are previously introduced. It is well 
known, that certain nations grant bountieb on the exporta- 
tion of particular commi)ditles, to enable their own work- 
men to undersell and supplant all competitors, in the coun- 



Extracts from A. Ha7nilton'*8 Reports 1 17 

tries to which those commodities are sent. Hence the un^ 
dertakers of a new manufacture have to contend^ not only 
with the natural disadvantages of a new undertaking; but 
with the gratuities and remunerations which other govern" 
ments bestow. To be e7iabled to contend with success^ it is 
evident^ that the interference and aid of their government are 
indis/if^nsible. Combinations by those engaged in a parti- 
cular branch of business in one country, to frustrate the 
first efforts to introduce it in another, by temporary sacrifi- 
ces, recompensed perhaps by extraordinary indemnificalions 
of the government of such country, are believed to have 
existed, and are not to be regarded as destitute of probabi- 
lity. The existence or assurance of aid from the govern- 
ment of the country, in which the business is to be intro- 
duced, may be essential to fortify adventurers against the 
dread of such combinations — to defeat their effects, if form- 
ed — and to prevent their being formed, by demonstrating 
that they must in the end prove fruitless. Whatever room 
there may be for an expectation that the industry of a peo- 
ple, under the direction of private interest* will upon equal 
terms find out the most beneficial employment for itself; 
there is none for a reliance, that it will struggle against the 
force of unequal terms, or will of itself surmount all the ad- 
ventitious barriers to a successful competition, which may 
have been erected from practice and previous possession of 
the ground, or by those which may have sprung from posi- 
tive regulations, and an artificial policy. This general re- 
flection might alone suffice as an answer to the objection 
tinder examination; exclusively of the weighty considera- 
tions which have been particularly urged.** 



" To all the arguments which are brought to evince the 
impracticability of success in n^anufacturing establishments 
in the United States, it might have been a sufficient answer 
to have referred to the experience of what has been already 
done: it is certain that several important branches have 
grown up and flourished with a rapidity which surprises; 
affording an encouraging assurance of success in future at- 
tempts; of these it may not be improper to enumerate the 
most considerable—- 

" I. Of Skins. Tanned and tawed leather; dressed skins^ 
shoes, boots and slippers, harness and saddlery of all kinds, 
portmanteaus and trunks, leather breeches, gloves, muffs 
and tippets, parchment and glue. 



118 Extracts from A. Hamilton's Refiort, 

" II. Of Iron, Bar and sheet iron, steel, nail rods and nails, 
implements of husbandry, stoves, pots and other household 
utensils, the steel and iron work of carriages, and for ship 
building; anchors, scale beams, and weights, and various 
tools of artificers; arms of different kinds; though the ma- 
nufacture of these last has of late diminished for want of 
demand. 

"III. Of Wood, Ships, cabinet wares and turnery, wool 
and cotton cards, and other machinery for manufactures and 
husbandry, mathematical instruments, coopers' wares of 
every kind. 

" IV. Of Flax and Hemp, Cables, sail-cloth, cordage., 
twine and packthread. 

" V. Bricks and coarse tiles, and potters' wares. 

" VI. Ardent spirits, and malt liquors. 

"VII Writing and printing paper, sheathing and wrap- 
ping paper, pasteboards, fullers' or press papers, paper 
hangings. 

" VIIL Hats of fur and wool, and of mixtures of both. 
Women's stuff and silk shoes. 

" IX. Refined sugars. 

" X, Oils of animals and seeds, soap, spermaceti and tal- 
low candles. 

" XI Copper and brass wares, particularly utensils for 
distillers, sugar refiners and brewers, andirons and other 
articles for household use — philosophical apparatus. 

" XII. Tin wares for most purposes of ordinary use. 

" X ^ II. Carriages of all kinds. 

" XIV. Snuff, chewing and smoaking tobacco. 

" XV. Starch and hair powder. 

" XVL Lampblack and other painters' colours. 

"XVII Gunpowder. 

<^ Besides manufactories of these articles which are car- 
ried on as regular trades, and have attained to a considerable 
deR;ree of maturity, there is a vast scene of household ma- 
nufacturing, which contributes more largely to the supply 
of the community, than could be imagined, without having 
made it an object of particular inquiry. This observation 
is the pleasing result of the investigation, to which the sub- 
ject of this report has led; and is applicable as well to the 
southern as to the middle and northern states. Great 
quantities of coarse cloths, coatings, serges and flannels, 
linsey woolseys, hosiery of wool, cotton and thread, coarse 
fustians, jeans and muslins, checked and striped cotton and 



Extracts from A. Hamilton's Refiort, 119 

linen goods, bedticks, coverlets and counterpanes, tow li- 
nens, coarse shirtings, sheetings, towelling and table linen, 
and various mixtures of wool and cotton, and of cotton and 
flax, are made in the household way; and in many instances 
to an extent not only sufficient for the supply of the families 
in which they are made, but for sale; and even in some 
cases for exportation. It is computed in a number of dis- 
tricts, that two-thirds, three-fourths, and even four-fifths of 
all the clothing of the inhabitants are made by themselves. 
The importance of so great a progress, as appears to have 
been made in family manufactures, within a few years, both 
in a moral and political view, renders the fact highly inte- 
resting. 

" Neither does the above enumeration comprehend all the 
articles that are manufactured as regular trades. Many 
others occur, which are equally well established, but which 
not being of equal importance have been omitted. And 
there are many attempts still in their infancy, which, though 
attended with very favourable appearances, could not have 
been properly comprised in an enumeration of manufacto- 
ries already established. There are other articles also of 
great importance, which, though, strictly speaking, manu- 
factures, are omitted, as being immediately connected with 
husbandry; such are flour, pot and pearl ash, pitch, tar, tur- 
pentine, and the like. 

" There remains to be noticed an objection to the encou- 
ragement of manufactures, of a nature different from those 
which question the probability of success — this is derived 
from its sufiposed tendency to give a monofioLy of advan-- 
tages to particular classes^ at the exfiense of the rest of the 
community^ who^ it is affirmed, would be able to firocure the 
requiaite sufi/ilies of manufactured articles^ on better terms 
from, foreigners^ than from our own citizens; and who, it is 
alleged, are reduced to the necessity of paying an enhanced 
price for whatever they want, by every measure, which ob- 
structs the free competition of foreign commodities. 

" It is not an unreasonable supposition, that measures 
which serve to abridge the free competition of foreign arti- 
cles, have a tendency to occasion an enhancement of prices, 
and it is not to be denied, that such is the effect in a number 
of cases; but the fact does not uniformly correspond with 
the theory. A reduction of prices has^ in several instances^ 
immediately succeeded to the establishment of a domestic ma^ 
nufacture. Whether it be that foreign manufacturers en- 



120 Extracts from A. Hamilton's Report, 

deavour to supplant, by underselling our own, or whatever 
else be the cause, the effect has been such as is slated, and 
the reverse of what might have been expected. 

" But though it were true^ that the immediate and certain 
effect of regulations controlling the comfietition of foreign 
with domestic fabrics^ was an increase of fir ice ^ it is univer* 
sally true^ that th-e contrary is the ultimate effect with 
every successful manufacture. When a domestic manufaC' 
ture has attained to fierfection^ and has engaged in the fir o» 
secution of it a comfietent number of fiersons^ it invariably 
becomes cheaper. Being free from the heavy charges which 
attend the importation of foreign commodities^ it can be af- 
forded^ and accordingly seldom or never fails to be sold 
cheaper^ in pr'jcess of time ^ than was the foreign article for 
which it is a substitute. The internal competition which takes 
place^ soon does away every thing like monopoly ; and by de- 
grees reduces the price of the article to the miniinum of a 
reasonable profit on the capital employed. This accords 
with the reason of the things and with experience, 

" Whence it follows, that it is the interest of the cornmu- 
nity^ with a view to eventual and permanent economy^ to 
encourage the growth of manufactures. In a national viewy 
a temporary enhancement of price must always be well 
compensated by a permanent reduction of it, 

" It is a reflection, which may witli propriety be indulged 
here, that this eventual diminution of the prices of manu- 
factured articles, which is the result of internal manufac- 
turing establishments, has a direct and very important ten- 
dency to benefit agriculture. It enables the farmer to pro- 
cure, with a smaller quantity of his labour, the manutac- 
tured produce of which he stands in need, and consequent- 
ly increases the value of his income and property. 

'^ The objections, which are commoiily made to the expe- 
diency of encouraging, and to the probability of succeeding 
in manutacturing pursuits, in the United States, having 
now been discussed, the considerations, which have ap- 
peared in the course of the discussion, recommending that 
species of industry to the patronage of the government, 
will be materially strengthened by a few general and some 
particular topics, which have been naturally reserved for 
subsequent notice. 

" 1 . There seems to be a moral certainty that the trade of a 
coutitry, which is both manufacturing and agricultural^ will 
be more lucrative and prosperous^ than that of a country 
which is merely agricultural 



Extracts from A. Hamilton'* s Refiort, 121 

« One reason for this is found in that general effort of na- 
tions (which has been already mentioned) to procure from 
their own soils, the articles of prime necessity requisite to 
their own consumption and use; and which serves to ren- 
der their demand for a foreign supply of such articles in a 
great degree occasional and contingent. Hence, while the 
necessities of nations exclusively devoted to agriculture, 
for the fabrics of manufacturing states, are constant and 
regular, the wants of the latter for the products of the for- 
mer, are liable to very considerable fluctuations and inter- 
ruptions. The great inequalities resulting from difference 
of seasons, have been elsewhere remarked; this uniformity 
of demand, on one side, and unsteadiness of it on the other, 
must necessarily have a tendency to cause the general 
course of the exchange of commodities between the parties, 
to turn to the disadvantage of the merely agricultural states. 
Peculiarity of situation, a climate and soil adapted to the 
production of peculiar commodities, may, sometimes, con- 
tradict the rule; but there is every reason to believe, that 
it will be found, in the main, a just one. 

" Another circumstance, which gives a superiority of com- 
mercial advantages to states that manufacture, as well as 
cultivate, consists in the more numerous attractions, which 
a more diversified market offers to foreign customers, and 
in the greater scope which it affords to mercantile enter- 
prise. It is a position of indisputable truth in commerce, 
depending too on very obvious reasons, that the greatest 
resort will ever be to those marts, where commodities, 
while equally abundant, are most various. Each difference 
of kind holds out an additional inducement; and it is a 
position not less clear, that the field of enterprise must be 
enlarged to the merchants of a country, in proportion to 
the variety as well as the abundance of commodities which 
they find at home for exportation to foreign markets. 

*' A third circumstance, perhaps not inferior to either of 
the other two, conferring the superiority which has been 
stated, has relation to the stagnations of demand for certain 
commodities which at some time or other interfere more 
or less with the sale of all. The nation which can bring 
to market but few articles, is likely to be more quickly and 
sensibly affected by such stagnations; than one which is al- 
ways possessed of a great variety of commodities; the for- 
mer frequently finds too great a portion of its stock of ma- 
terials^ for sale or exchange, lying on hand— or is obliged 



122 Extracts from ji- Hamilton^ s Rcjiort. 

to make injurious sacrifices to supply it« wants of foreign 
articles, which are numerous and urgent, in proportion to 
the smallness of the number of its own. The latter com- 
monly finds itself indemnified, by the high prices of some 
articles, for the low prices of others — and the prompt and 
advantageous sale of those article which are in demand 
enables its merchants the better to wait for a favourable 
change, in respect to those which are not. There is ground 
to believe, that a difference of situation, in this particular, 
has immensely different effects upon the wealth and pros- 
perity of nations. 

" From these circumstances, collectively, two important 
inferences are to be drawn; one, that there is always a 
higher probability of a favourable balance of trade, in re- 
gard to countries, in which manufactures, founded on the 
basisof a thriving agriculture, flourish, than in regard to 
those, which are confined wholly or almost wholly to agri- 
culture; the other (which is also a consequence of the first) 
that countries of the former description are likely to pos- 
sess more pecuniary wealth, or money, than those of the 
latter. 

" But the uniform afifiearance of an abundance of sfiecie^ 
as the concomitant of a flourishing state of manufactures^ 
and of the reverse^ where they do not prevail^ afford a 
strong fire sumption of their favourable operation ufion the 
"Wealth of a country, 

'' JSTot only the wealthy but the indefiendence and security 
of a country^ afifiear to be materially connected ivith the 
prosperity of manufactures, R-very nation^ with a view to 
these great objects^ ought to endeavour to possess within 
itself all the essentials of national supply. These com^ 
prise the means of subsistence^ habitation^ clothing^ and de- 
fence, 

" The possession of these is necessary to the perfection 
of the body politic, to the safety as well as to the welfare of 
the society; the want of either, is the want of an important 
organ of political life and motion; and in the various crises 
which await a state, it must severely feel the effects of 
such deficiency. The extreme embarrassments of the Unit' 
ed Statesy during the late war^from an incapacity of sup^ 
plying themselves^ are still matter of keen recollection: a 
future war might be expected again to exemplify the mi%' 
chiefs and dangers of a situation^ to which that incapacity 
is still in too great a degree applicable^ unless changed by 
timely and vigorous exertions. To effect this change, as 



Extracts from A. JIamilt07i's Refiort. 123 

fast as shall be prudent, merits all the attention and all the 
zeal of our public councils; 'tis the next great work to be 
accomplished. 

" The want of a navy to protect our external commerce, 
as long as it shall continue, must render it a peculiarly pre- 
carious reliance, for the supply of essential articles; and 
must serve to strengthen firodigiously the arguments in fa^ 
vour of manufactures, 

" To these general considerations are added some of a 
more particular nature. 

" Our distance from Europe, the great fountain of manu- 
factured supply, subjects us, in the existing state of things, 
to inconvenience and loss in two ways. 

" The bulkiness of those commodities which are the 
chief productions of the soil, necessarily imposes very 
heavy charges on their transportation, to distant markets. 
These charges, in the cases, in which the nations, to whom 
our products are sent, maintain a competition in the supply 
of their own markets, principally fall upon us, and form ma- 
terial deductions, from the primitive value of the articles 
furnished. The charges on manufactured supplies brought 
from Europe, are greatly enhanced by the same circum- 
stance of distance. These charges, again, in the cases .in 
which our own industry maintains no competition, in our 
own markets, also principally fall upon us; and are an ad- 
ditional cause of extraordinary deduction from the primi- 
tive value of our own products; these being the materials 
of exchange for the foreign fabrics which we consume. 

" The equality and moderation of individual property, and 
the growing settlements of new districts, occasion, in this 
country, an unusual demand for coarse manufactures; the 
charges of which being greater in proportion to their greater 
bulk, augment the disadvantage, which has just been des- 
cribed. 

" As in most countries domestic supplies maintain a very 
considerable competition with such foreign productions of 
the soil, as are imported for sale; if the extensive establish- 
ment of manufactories in the United States does not create 
a similar competition in respect to manufactured articles, it 
appears to be clearly deducible, from the considerations ' 
which have been mentioned, that they must sustain a double 
loss in their exchanges with foreign nations; strongly con- 
ducive to an unfavourable balance of trade, and very pre- 
judicial to their interestSo 



124 Extracts fro7n A. Hamilton's Rejiort, 

*' These disadvantages press with no small weight, on the 
landed interest of the country. In seasons of fie ace ^ they 
cause a serious deduction from the iritrinsic value of the 
products of the soil. In the time of a war, which should 
either involve ourselves, or another nation, possessing a 
considerable share of our carrying trade, the charges on the 
transportation of our commodities, bulky as most of them 
are, could hardly fail to prove a grievous burden to the 
farmer, while obliged to depend in so great a degree as he 
now does, upon foreign markets for the vent of the surplus 
of his labour. 



" It is not uncommon to meet with an opinion, that though 
the promoting of manufactures may be the interest of a part 
of the union, it is contrary to that of another part. The 
northern and southern regions are sometimes represented 
as having adverse interests in this respect. Those are call- 
ed manufacturing, these agricultural states; and a species 
of opposition is imagined to subsist between the manufac- 
turing and agricultural interest. 

<' This idea of an o/ifiosition between those tivo interests 
is the common error of the early periods of every country; 
but experience gradually dissipates it. Indeed they are 
perceived so often to succour and to befriend each other, 
that they come at length to be considered as one; a suppo- 
sition which has been frequently abused, and is not univer- 
sally true. Particular encouragements of particular manu- 
factures may be of a nature to sacrifice the interests of land- 
holders to those of manufacturers; but it is nevertheless a 
maxim well established by experience, and generally ac- 
knowledged where there has been sufficient experience, 
that the ' aggregate^ prosperity of manufactures^ and the 
t aggregate^ prosperity of agriculture are intimately con- 
nected. In the course of the discussion which has had 
place, various weighty considerations have been adduced 
operating in support of this maxim. Perhaps the superior 
steadiness of the demand of a domestic market for the sur- 
plus produce of the soil, is alone a convincing argument of 
its truth. 

" Ideas of a contrariety of interests between the northern 
and southern regions of the union, are in the main as un- 
founded as they are mischievous. The diversity of cir- 
cumstances, on which such contrariety is usually predicat- 
ed, authorizes a directly contrary conclusion. Mutual wants 



Extracts from J. Hamilion's Rejiort. 125 

constitute one of the strongest links of political connexion; 
and the extent of these bears a natural proportion to the 
diversity in the means of mutual supply. 

" Suggestions of an opposite complexion are ever to be 
deplored, as unfriendly to the steady pursuit of one great 
common cause, and to the perfect harmony of all the parts. 

" In proportion as the mind is accustomed to trace the 
intimate connexion of interests, which subsists between all 
the parts of society, united under the same government — 
the infinite variety of channels which serve to circulate the 
prosperity of each to and through the rest — in that propor- 
tion it will be little apt to be disturbed by solicitudes and 
apprehensions, which originate in local discriminations. It 
is a truth as important as it is agreeable, andxDue to which 
it is not easy to imagine exceptions, that every thing tend- 
ing to establish substantial and permanent order, in the af- 
fairs of a country, to increase the total mass of industry and 
opulence, 5s ultimately beneficial to every part of it. On 
the credit of this great truth, an acquiescence may safely 
be accorded, from every quarter, to all institutions, and ar- 
rangements, which promise a confirmation of public order, 
and an augmentation of national resource. 

" But there are more particular considerations which serve 
to fortify the idea, that the encouragement of manufactures 
is the interest of all parts of the union. If the northern 
and middle states should be the principal scenes of such 
establishments, they would immediately benefit the more 
southern, by creating a demand for productions, some of 
which they have in common with the other states, and 
others which are either peculiar to them, or more abun- 
dant, or of better quality than elsewhere. These produc- 
tions, principally, are timber, flax, hemp, cotton, wool, raw 
silk, indigo, iron, lead, furs, hides, skins and coals; of these 
articles, cotton and indigo are peculiar to the southern 
states: as are, hitherto, lead and coals; flax, and hemp are 
or may be raised in greater abundance there, than in the 
more northern states; and the wool of Virginia is said to 
be of better quality than that of any other state; a circum- 
stance rendered the more probable by the reflection, that 
Virginia embraces the same latitudes with the finest wool 
countries of Europe. The climate of the south is also bet- 
ter adapted to the production of silk. 

" The extensive cultivation of cotton can perhaps hardly 
be expected, but from the previous establishment of do- 

L 2 



126 Extracts from A. Hamilton's Refiort^ 

inestic manufactories of the article; and the surest encour 
ragement and vent, for the others, would result from simi- 
lar establishments in respect to them. 

" A full view having now been taken of the inducements 
to the promotion of manufactures in the United States, ac- 
companied with an examination of the principal objections 
which are commonly urged in opposition, it is proper, in 
the next place, to consider the means by which it may be 
effected, as introductory to a specification of the objects 
which, in the present state of things, appear the most fit to 
be encouraged, and of the particular measures which it 
may be adviseable to adopt, in respect to each. 

" In order to a better judgment of the means proper to 
be resorted to by the United States, it will be of use to 
advert to those which have been employed with success in 
other countries. The principal of these are — 

I. " Protecting duties — or duties on those foreign arti- 
cles which are the rivals of the domestic ones intended to 
be encouraged. 

" Duties of this nature evidently amount to a virtual 
bounty on the domestic fabrics, since, by enhancing the 
charges on foreign articles, they enable the national manu- 
facturers to undersell all their foreign competitors. The 
propriety of this species of encouragement need not be 
dwelt upon; as it is not only a clear result from the numer- 
ous topics which have been suggested, but is sanctioned 
by the laws of the United States, in a variety of instances; 
it has the additional recommendation of being a resource 
of revenue. Indeed all the duties imposed on imported 
articles, though with an exclusive view to revenue, have 
the effect in contemplation, and, except where they fall on 
raw materials, wear a beneficent aspect towards the manu- 
factures of the country. 

II. " Prohibitions of tival articles, or duties equivalent to 
prohibitions. 

" This is another and an efficacious means of encourag- 
ing national manufactures; but in general it is only fit to be 
employed when a manufacture has made such a progress, 
and is in so many hands, as to insure a due competition, 
and an adequate supply, on reasonable terms. Of duties 
equivalent to prohibitions, there are examples in the laws 
of the United States, and there are other cases, to which 
the principle may be advantageously extended; but they 
are not numerous. 



Extracts from A, HamiltorVs Refiort, ISf 

" Considering a monopoly of the domestic market to its 
own manufacturers as the reigning policy of manufacturing 
nations, a similar policy on the part oi the United States, 
in every proper instance, is dictated, it might almost be 
said, by the principles of distributive justice; certainly by 
the duty of endeavouring to secure to their own citizens a 
reciprocity of advantai^es. 

" III. Prohibitions of the exportation of the materials of 
manufactures. 

" The desire of securing a cheap and plentiful supply for 
the national workmen, and, where the article is either pe- 
culiar to the country, or of peculiar quality there, the jea- 
lousy of enablini^ foreign workmen to rival those of the na- 
tion, with its own materials, are the leading motives to this 
species of regulation. It ought not to be affirmed, that it 
is in no instance proper; but it is certainly one which ought 
to be adopted with great circumspection, and only in very 
plain cases. It is seen at once, that its immediate opera- 
tion is to abridge the demand and keep down the price of 
the produce of some other branch of industry, generally 
speaking, of agriculture, to the prejudice of those whu car- 
ry it on; and though, if it be really essential to the pros- 
perity of any very important national manufacture, it may 
happen that those who are injured, in the first instance, 
may be eventually indemnified, by the superior steadiness 
ot an extensive domestic market depending on that pros- 
perity: yet in a matter, in which there is so much room for 
nice and difficult combinations, in which such opposite 
considerations combat each other, prudence seems to dic- 
tate, that the expedient in question, ought to be indulged 
with a sparing hand. 

IV. " Pecuniary bounties. 

" This has been found one of the most efficacious means 
of encouraging manufactures, and it is, in some views, the 
best. Though it has not yet been practised upon by the 
government of the United States, (unless the allowance on 
the exportation of dried and pickled fish and salted meat 
could be considered as a bounty) and though it is less fa- 
voured by publick opinion than some other modes — its ad- 
vantages are these — 

1. " It is a species of encourage^ient more positive and 
direct than any other, and for that very reason, has a more 
immediate tendency to stimulate and uphold new enter- 
prises, increasing the chances of profit, and diminishing 
the risks of loss, in the first attempts. 



128 Extracts from A, Hamilton's Refiort. 

2. " It avoids the inconvenience of a temporary augmen- 
tation of price, which is incident to some other modes, or 
it produces it to a less degree; either by making no addi- 
tion to the charges on the rival foreign article, as in the 
case of protecting duties, or by making a smaller addition. 
The first happens when the fund for the bounty is derived 
from a different object (which may or may not increase 
the price of some other article, according to the nature of 
that object;) the second, when the fund is derived from 
the same or a similar object of foreign manufacture. One 
per cent, duty on the foreign article, converted into a boun- 
ty on the domestic, will have an equal effect with a duty 
of two per cent, exclusive of such bounty; and the price of 
the foreign commodity is liable to be raised, in the one 
case, in the proportion of one per cent, in the other, in 
that of two per cent. Indeed the bounty, when drawn from 
another source, is calculated to promote a reduction of 
price; because, without laying any new charge on the fo- 
reign article, it serves to introduce a competition with it, 
and to increase the total quantity of the article in the 
market. 

3. " Bounties have not, like high protecting duties, a ten- 
dency to produce scarcity. An increase of price is not al- 
ways the immediate, though, where the progress of a do- 
mestic manufacture does not counteract a rise, it is com- 
monly the ultimate effect of an additional duty. In the 
interval, between the laying of the duly and a proportiona- 
ble increase of price, it may discourage importation, by in- 
terfering with the profits to be expected from the sale of 
the article. 

4. " Bounties are sometimes not only the best, but the 
only proper expedient, for uniting the encouragement of a 
new object of agriculture, with that of a new object of manu- 
facture. It is the interest of the farmer to have the pro- 
duction of the raw material promoted, by counteracting the 
interference of the foreign material of the same kmd — It 
is the interest of the manufacturer to have the material 
abundant or cheap, If, prior to the domestic production of 
the material, in sufficient quantity, to supply the manufac- 
tUi er on good terms, a duty be laid upon the importation 
of it from abroad, with a view to promote the raising of it 
at home, the interest both of the farmer and manufacturer 
will be disserved. By either destroying the requisite sup- 
ply, or raising the price of the article, beyond what can be 



Extracts from J, Hamiltov^s Refiort, 129 

afforded to be given for it, by the conductor of an infant 
manufacture, it is abandoned or fails; and there being no 
domestic manufactories, to create a demand for the raw 
material, which is raised by the farmer, it is in vain, that 
the competition of the like foreign articles, may have been 
destroyed. 

" It cannot escape notice, that a duty upon the importa- 
tion of an article, can no otherwise aid the domestic produc- 
tion of it, than by giving the latter ^e^reater advantages in 
the home market. It can have no influence upon the ad- 
vantageous sale of the article produced in foreign markets; 
no tendency, therefore, to promote its exportation. 

'* The true way to conciliate those two interests, is to lay 
a duty on foreign manufactures of the material, the g<'owth 
of which is desired to be encouraged, and to apply the pro- 
duce of that duty by way of bounty, either upon the pro- 
duction of the material itself, or upon its manufacture at 
home, or upon both. In this disposition of the thing, the 
manufacturer commences his enterprise, under every ad- 
vantage, which is attainable as to quantity or price of the 
raw material; and the farmer, if the bounty be immediately 
given to him, is enabled by it to enter into a successful 
competition with the foreign material: if the bounty be to 
the manufacturer on so much of the domestic material as 
he consumes, the operation is nearly the same; he has a 
motive of interest to prefer the domestic commodity, if of 
equal quality, even at a higher price than the foreign, so 
long as the difference of price is any thing short of the 
bounty, which is allowed upon the article. 

" Except the simple and ordinary kinds of household ma- 
nufacture, or those for which there are very commanding 
local advantages, pecuniary bounties are m most cases in* 
dispensable to the introduction of a new branch. A sti- 
mulus and a sufiflort not less fionverful and direct is, gene- 
rally s/ifaking^ essential to the overcoming of the obstacles 
which arise from the comfietitions of superior skill and ma- 
turitij elsewhere. Bounties are esfiecially essential^ in re- 
gard to articles^ ufion which those foreigners who have been 
accustomed to sufifily a country^ are in the practice of 
granting them. 

'^ The continuance of bounties on manufactures long es- 
tablished, must almost always be of questionable policy: 
because a presumption would arise in every such case, that 
there were natural and inherent impediments to successv 



130 Extracts from A. Hamilton's Refiort, 

But in new under takings^ they are as justiciable as they are 
oftentimes necessary, 

" There is a degree of prejudice against bounties, from 
an appearance of giving away the public money, without 
an immediate consideration, and from a supposition, that 
they serve to enrich particular classes, at the expense of 
the community. 

" But neither of these sources of dislike will bear a serious 
examination: There is no fiurfiose to which public money 
can be more beneficially afifilied^ than to the acquisition of 
a new and useful branch of industry ; no co?isideration more 
valuable than a permanent addition to the general stock of 
productive labour. 

" As to the second source of objection, it equally lies 
against other modes of encouragement which are admitted 
to be eligible. As often as a duty upon a foreign article 
makes an addition to its price, it causes an extra expense 
to the community, for the benefit of the domestic manufac- 
turer. A bounty does no more. But it is the interest oj 
the society^ in each cas€^ to submit to a temporary expense^ 
which is more than compensated^ by an increase of industry 
and wealth — by an augmentation of resources and indepen- 
dence-^and by the circumstance of eventual cheapnessy 
which has been noticed in another place . 

V. " Premiums. 

"These are of a nature allied to bounties, though distin- 
guishable from them in some important features. 

" Bounties are applicable to the whole quantity of an arti- 
cle produced, or manufactured, or exported, and involve a 
correspondent expense: premiums serve to reward some 
particular excellence or superiority, some extraordinary 
exertion or skill, and are dispensed only in a small number 
of cases. But their effect is to stimulate general effort; 
contrived so as to be both honorary and lucrative, they ad- 
dress themselves to different passions; touching the chords 
as well of emulation as of interest. They are accordingly 
a very economical mean of exciting the enterprise of a 
whole community. 

'* There are various societies in different countries, whose 
object is the dispensation of premiums for the encourage- 
ment of agriculture, arts, manufactures, and commerce; 
and though they are, for the most part, voluntary associa- 
tions, with comparatively slender funds, their utility has 
been immense. Much has been done by this mean in 



Extracts from A, Hamilton* s Refiort, 131 

Great Britain; Scotland in particular, o.wes materially to it 
a pioditrious amelioration of condition. From a similar 
establishment in the United States, supplied and supported 
by the government of the union, vast benefits mi.8:ht rea- 
sonably be expected. 

VI. " The exemption of the materials of manufactures 
from duty. 

" The policy of that exemption, as a general rule, particu- 
larly in reference to new establishments, is obvious. It can 
hardly ever be advisable to add the obstructions of fiscal 
burdens to the difficulties which naturally embarrass a new 
manufacture; and where it is matured and in condition to 
become an object of revenue, it is, generally speaking, 
better that the fabric, than the material, should be the sub- 
ject of taxation. Ideas of proportion between the quan- 
tum of the tax and the value of the article, can be more 
easily adjusted in the former than in the latter case. An ar- 
gument for exemptions of this kind in the United States, is 
to be derived from the practice, as far as their necessities 
have permitted, of those nations whom we are to meet as 
competitors in our own and in foreign markets. 

VII. «' Drawbacks of the duties which are imposed on the 
materials of manufactures. 

" It has already been observed, as a general rule, that du- 
ties on those materials ought, with certain exceptions, to 
be forborne. Of these exceptions, three cases occur, 
which may serve as examples — one, where the material is 
itself an object of general or extensive consumption, and a 
fit and productive source of revenue: another, where a ma- 
nufacture of a simpler kind, the competition of which with 
a like domestic article is desired to be restrained, partakes 
of the nature of a raw material, from being capable by a 
further process, to be converted into a manufacture of a 
different kind, the introduction or growth of which is desir- 
ed to be encouraged: a third, where the material itself is 
a production of the country, and in sufficient abundance to 
furnish a cheap and plentiful supply to the national manu- 
facturers. 

*' Under the first description comes the article of molasses. 
It is not only a fair object of revenue, but being a sweet, it 
is just that the consumers of it should pay a duty as well 
as the consumers of sugar. 

" Cottons and linen in their white state, fall under the se- 
cond description — a duty upon such as are imported is pro- 



132 Extracts from A, Hamilton's Refiort, 

per to promote the domestic manufacture of similar arti- 
cles in the same state — a drawback of that duty is proper 
to encourage the printing and staining at home, of those 
which are brought from abroad. When the first of these 
manufactures has attained sufficient maturity in a country, 
to furnish a full supply for the second, the utility of the 
drawback ceases. 

" The article of hemp either now does or may be expected 
soon to exemplify the third case, in the United States. 

" Where duties on the materials of manufactures are not 
laid for the purpose of preventing a competition with some 
domestic production, the same reasons which recommend, 
as a general rule, the exemption of those materials from 
duties, would recommend, as a like general rule, the al- 
lowance of drawbacks in favour of the manufacturer; ac- 
cordingly, such drawbacks are familiar in countries which 
systematically pursue the business of manufactures; which 
furnishes an argument for the observance of a similar poli- 
cy in the United States; and the idea has been adopted by 
the laws of the union, in the instances of salt and molas- 
ses. It is believed that it will be found advantageous to 
extend it to some other articles. 

VIII. « The encouragement of new inventions and disco- 
veries, at home, and of the introduction into the United 
States of such as may have been made in other countries; 
particularly those which relate to machinery. 

" It is customary with manufacturing nations to prohibit, 
under severe penalties, the exportation of implements and 
machines, they have either invented or improved. There 
are already objects for a similar regulation in the United 
States; and others may be expected to occur from time to 
time. The adoption of it seems to be dictated by the prin- 
ciple of reciprocity. Greater liberality, in such respects, 
might better comport with the general spirit of the coun- 
try; but a selfish and exclusive policy in other quarters, 
will not always permit the free indulgence of a spirit which 
would place us upon an unequal footing. As far as prohibi- 
tions tend to prevent foreign competitors from deriving 
the benefit of the improvements made at home, they tend 
to increase the advantages of those by whom they may 
have been introduced; and operate as an encouragement to 
exertion. 

IX, '• Judicious regulations for the inspection of manu- 
factured commodities. 



Extracts from A, Hamilton' b Refiort. 133 

This is not among the least important of the means, by 
which the prosperity of manufactures may be promoted. It 
i^ indeed in many cases one of the most essential. Con- 
tributing^ to prevent frauds upon consumers at home, and 
exporters to foreign countries — to improve the quality and 
preserve the character of the national manufactures, it can- 
not fail to aid the expeditious and advantageous sale of 
them, and to serve as a guard against successful competi- 
tion from other quarters. The reputation of the flour and 
lumber of some states, and of the potash of others, has 
been established by an attention to this point. And the 
like good name might be procured for those articles, 
wheresoever produced, by a judicious and uniform sjstem 
of inspection throughout the ports of the United States. A 
like system might also be extended with advantage toother 
commodities. 

*' X. The facilitating of pecuniary remittances from place 
to place. 

'' XI. The facilitating of the transportation of commodi- 
ties. 

" The fop^going are the principal of the means, by which 
the growth of manufactures is xDrdinarily promoted. It is, 
however, not merely necessary that measures of govern- 
ment, which have a direct view to manufactures, should be 
calculated to assist and protect them; but that those which 
only collaterally affect them, in the general course of the 
administration, should be guarded from any peculiar ten- 
dency to injure them. 

" The possibility of a diminution of the revenue may pre- 
sent itself, as an objection to the arrangements which have 
been submitted. 

'' But there is no truth which may be more Jirmly relied 
ufion^ than that the interests of the revenue are promoted 
by ivhatever firomotes an increase of 7iational industry and 
wealth, 

" In proportion to the degree of these, is the capacity of 
every country to contribute to the public treasury; and 
when the capacity to pay is increased, or even is not de- 
creased, the only consequence of measures which diminish 
any particular resource is a change of the object. If by 
encouraging the manufacture of an article at home, the 
revenue, which has been wont to accrue from its importa- 
tion, should be lessened, an indenmification can easily be 



134 J^x tract of a letter from Benjamin Austin, 

found, either out of the manufacture itself, or from some 
other object which may be deemed more convenient.'* 

To fill up the chasm here, we annex the opinions of the ex- 
president, Mr. Jefferson, on the same subject, given in 
reply to a letter from Benjamin Austin, Esq. of Boston. 

Extract of a letter from Benjamin Austin^ Esq, to the 
Hon, Thomas Jtfftrson. 

December 9, 1815. 

* As the present state of our country demands extraordi- 
nary efforts in congress to bring forward the agricultural 
and manufacturing interests oi the United States, I am in- 
duced to mention a plea often used by the friends of Eng- 
land, that the work-shofis of Europe are recommended by 
you as the most firofier to furnish articles of manufacture 
to the citizens of the United States, by which they infer that 
it is your opinion, that the manufactures of this country 
are not proper objects for congressional protection. They 
frequently enlarge on this idea as corresponding with your 
sentiments, and endeavour to weaken our exertions in this 
particular, by quoting you as the advocate oi foreign ma^ 
nufactures^ to the exclusion of domestic. Not that these 
persons have any friendly motive towards you: but they 
think it will answer their purposes if such sentiments can 
be promulgated with an appearance of respect to your 
opinion. I am sensible that many of these persons mean 
to misrepresent your real intentions; being convinced that 
the latitude they take with your remarks on manufactures, 
is far beyond what you contemplated at the period they 
were written. The purity of your mind could not lead 
you to anticipate the perfidy of foreign nations, which has 
since taken place. — If you had, it is impossible that you 
would have discouraged the manufactures of a nationt 
whose fields have since been abundantly covered with 
merino sheep, flax and cotton; or depended on looms at 
6000 miles distance, to furnish the citizens with clothing, 
when their internal resources were adequate to produce 
such necessaries by their domestic industry. 

' You will pardon my remarks, and excuse my freedom 
in writing you on this subject. But it would be an essen- 
tial service at this crisis, when the subject of manufactures 
will come so powerfully before congress, by petitions froi^ 



Extract of a letter from Benjamin Austin, 135 

various establishments, if you would condescend to express 
more minutely your idea of the ' workshofis of Eurofie* 
in the supply of such articles as can be manufactured among 
ourselves. An explanation from you on this subject would 
greatly contribute to the advancement of those manufac- 
tures, which have risen during the late war to a respect- 
able state of maturity and improvement. Domestic manu- 
factures are the object contemplated; instead of establish- 
ments under the sole control of capitalists, our children 
may be educated under the inspection of their parents while 
the habits of industry may be dul^ inculcated. 

* If the general idea should prevail that you prefer 
foreign work-shofis to domestic^ the high character you 

sustain among the friends of our country, may lead them 
to a discouragement of that enterprize which is viewed by 
many as an essential object of our national independence. 
I should not have taken the freedom of suggesting my ideas, 
but being convinced of your patriotism, and devotedness to 
the good of your country, I am urged to make the forego- 
ing observations; your candour will excuse me if they are 
wrong.* 

Extract from Mr, Jefferson* s answer. 

January 9th. 1818. 

* You tell me I am quoted by those who wish to continue 
our dependence on England for manufactures. There was a 
time when I might have been so quoted with more candour. 
But within the thirty years which have since elapsed, 
how are circumstances changed? We were then in peace 
—our independent place among nations was acknowledged. 
A commerce which offered the raw materials in exchange 
for the same material, after receiving the last touch of in- 
dustry was worthy the attention of all nations. It was ex- 
pected, that those especially to whom manufacturing in- 
dustry, was important, would cherish the friendship of such 
customers by every favour, and particularly cultivate theif 
peace by every act of justice and friendship. Under this 
prospect the question seemed legitimate, whether with 
«uch an immensity of unimproved land, courting the hand 
of husbandry, the industry of agriculture or that of manu^ 
factures^ would add most to the national wealth? And the 
doubt on the utility of American manufactures was enter- 
tained on this consideration chiefly, that to the labour of the 
husbandman a yast addition is miide b^ thjp spontaneous 



136 Extract from Mr. Jefferson^ s answer. 

energies of the earth on which it is employed. For one 
grain of wheat committed to the earth, she renders 20, 30, 
and even 50 fold. — Whereas the labour of the manufac- 
turer falls in most instances vastly below this profit. 
Pounds of flax in his hands, yield but penny weights of lace. 
This exchange, too, laborious as it might seem, what a field 
did it promise for the occupation of the ocean — what a 
nursery for that class of citizens who were to exercise and 
maintain our equal rights on that element? — This was the 
state of things in 1785, when the Notes on Virginia were 
first published; when the ocean being open to all nations, 
and their common rights on it acknowledged and exercised 
under regulations sanctioned by the assent and usages 
of all, it was thought that the doubt might claim some con- 
sideration. But who, in 1785, could foresee the rapid de- 
pravity which was to render the close of tiiat century a dis- 
grace to the history of civilized society? Who could have 
imagined that the two most distinguished in the rank of 
nations, for science and civilization^ would have suddenly 
descended from that honourable eminence, and setting at 
defiance all those laws established by the Author of Nature 
between najtion and nation, as between man and man, would 
cover earth and sea with robberies and piracies, merely 
because strong enough to do it with temporal impunity; 
and that under this disbandment of nations from social or- 
der, we should have been despoiled of a thousand ships, 
and have thousands of our citizens reduced to Algerine 
slavery? And all this has taken place. The British inter- 
dicted to our vessels all harbours of the globe, without 
having fifst proceeded to some one of theirs, there paid a 
tribute proportioned to the cargo, and obtained a license to 
proceed to the port of destination. The French declared 
them to be lawful prize if they had touched at a port, or 
been visited by a ship, of the enemy nation. Compare this 
state of things with that of *^5^ and say whether an opinion 
founded in the circumstances of that day, can be fairly ap- 
plied to those of the present. We have experienced what 
we did not then believe, that there exists both profligacy 
and power enough to exclude us from the field of inter- 
change with other nations; that to be indefiendent for the 
comforts of life we must fabricate them ourselves. We must 
now place the manufacturer by the side of the agricultu^ 
rist» The former question is suppressed, or rather as- 
sumes a new form. The grand inquiry now is, shall we 



Remarks on A, Hmnilton's Report. 137 

make our own comforts^ or go without them at the will of a 
foreign nation? He^ therefore^ who is now against domestic 
manufactures^ 7nust be for reducing us either to a defien' 
dence on that nation^ or to be clothed in skins and to live 
like wild beasts, in dens and caverns. — I am proud to say, 
I AM NOT ONE OF THESE. Experience has taught me that 
manufactures are now as necessary to our inde/itndence as 
to our comfort — and if those who quote me as of a different 
opinion, will keep pace with me in purchasing nothing fo- 
reign, where an equivalent of domestic fabric can be ob- 
tained, without regard to difference of price, it will not be 
our fault if we do not have a supply at home equal to our 
demand, and wrest that weapon of distress from the hand 
which has so long wantonly wielded it. If it shall be pro- 
posed to go beyond our own supply, the question of '85 
will then recur, viz.: Will our surplus labour be then 
more beneficially employed in the culture of the earth, or 
in the fabrications of art? We have time yet for considera- 
tion, before that question will press upon us; and the max- 
im to be applied will depend on the circumstances which 
shall then exist. For in so complicated a science as poli- 
tical economy, no one maxim can be laid down as wise and 
expedient for all times and circumstances. Inattention to 
this is what has called for this explanation, to answer the 
cavils of the uncandid, who use my former opinion only as 
a stalking-horse to keep us in eternal vassalage to a foreign 
and unfriendly nation,^ 



NO. X. 



Philadelphia^ June 18, 1819. 
An idea appears to be entertained by many persons 
that our views lead to great innovations, and to advocate 
visionary and new formed projects, of which the results 
may be pernicious. The extracts from the report of 
Alexander Hamilton, on manufactures, contained in our last 
address, ought to remove all doubt on this subject. That 
most excellent document presented to the United States a 
plan of policy which embraced, on the most liberal scale^ 
that protection of the manufacturing industry of the United 
States, of which we are endeavouring, with our feeble ef- 
forts, to prove the necessity. 

M 2 



^38 RefioTt on the Cotton trade. 

We now lay before you two important reports of the 
committee of commerce and manufactures of the congress 
of 1816 — that congress by which was enacted the tariif that 
has produced the present calamitous state of affairs. These 
documents fully prove, that the subject had been duly con- 
sidered, and wa*s fully understood by that committee, whose 
wise counsels, unfortunately, were over-ruled by the disci- 
ples of Adam Smith, those gentlemen, whose maxim is 
* to buy where articles can be had cheafiest^''^-^^, maxim, we 
repeat, to the utter rejection of which Great Britain owes 

the great mass of her wealth, power, and resources a 

maxim which has never failed to ruin any nation by which 
it has been adopted. 

A cursory view of these reports will evince the sagacity 
of the gentlemen by whom they were drawn up. Their 
predictions have unhappily become history. The present 
impoverishment of the country, obviously resulting from 
the neglect of protecting domestic manufactures, was as 
clearly foretold by them, in 1816, as it can now be descri- 
bed by the most accurate pencil. In an ill hour, the admo- 
nitions of the committee were disregarded — and heavily the 
nation at present pays the forfeit. 

We annex to these reports the petition of the cotton 
manufacturers of Oneida county, in the state of New York, 
presented to congress in the year 1818, a pathetic ap- 
peal to their fellow citizens for protection— an appeal to 
which no attention whatever was paid. They were consign- 
ed to ruin, without the least attempt to interpose in their 
favour. 

Kefiort of the committee of commerce and manufactures^ to 
which were referred the memorials and petitions of the 
manufacturers of cotton "zi^oo /.-—February 13, 18)6. 
<* The committee of commerce and manufactures, to which 
were referred the memorials and petitions of the man- 
ufacturers of cotton wool, respectfully submit the fol- 
lowing REPORT— 

« The committee were conscious, that they had no ordi- 
nary duty to perform, when the house of representatives 
reiferred to their consideration, the memorials and petitions 
of the manufacturers of cotton wool. In obedience to the 
instructions of the house, they have given great attention to 
the subject, and beg leave to present the result of their de* 
liberations. 



Refiort on the Cotton trade, 139 

" They are not a little apprehensive, that they have not 
succeeded in doing justice to a subject so intimately con- 
nected with the advancement and prosperity of agriculture 
and commerce — a subject which enlightened statesmen and 
philosophers have deemed not unworthy of their attention 
and consideration. 

<' It it not the intention of the committee to offer any 
theoretical opinions of their own, or of others. They are 
persuaded that a display of speculative opinions would not 
meet with approbation. From these views, the committee 
are disposed to state facts, and make such observations only 
as shall be intimately connected with, and warranted by, 
them. 

" Prior to the years 1806 and 1807, establishments for 
manufacturing cotton wool had not been attempted, but in 
a few instances, and on a limited scale. Their rise and 
progress are attributable to embarrassments to which com- 
merce was subjected; which embarrassments originated 
in causes not within the control of human prudence. 

** While commerce flourished, the trade which had been 
carried on with the continent of Europe, with the East-In- 
dies, and with the colonies of Spain and France, enriched 
our enterprising merchants, the benefits of which were 
sensibly felt by the agriculturists, whose wealth and industry 
were increased and extended. When external commerce 
was suspended, the capitalists throughout the Union became 
solicitous to give activity to their capital. A portion of it, 
it is believed, was directed to the improvement of agricul- 
ture, and not an inconsiderable portion of it, as it appears, 
was likewise employed in erecting establishments, for manu- 
facturing cotton wool. To make the statement as satis- 
factory as possible— to give it all the certainty that it is 
susceptible of attaining, the following facts are respectfully 
submitted to the consideration of the house. They show 
the rapid progress which has been made in a few years, and 
evidence the ability to carry them on with certainty of suc- 
cess, should a just and liberal policy regard them as objects 
deserving encouragement. 



!N THE YEAR. 


Bales of cotton manufactured in 
manufacturing establishments. 


1800 
1805 
1810 
1815 


500 

1,000 
10,000 
90,000 



140 Refi^rt on the Cotton trade. 

" This statement the committee have no reason to doubt; 
Bor have they any to question the truth of the following 
succinct statement of the capital which is employed, of the 
labour which it commands, and of the products of that la- 
bour. 

« Capital ' S 40,000,000 

" Males employed, from the age of seven- 
teen and upwards - - - 10,000 
" Women and female children - - 66,000 
^< Boys, under seventeen years of age - 24,000 
« Wages of one hundred thousand persons, 

averaging g 150 each - - 15,000,000 

" Cotton wool manufactured, nine thousand 

bales, amounting to lbs, - - 27,000,000 

<* Number of yards of cotton, of various kinds, 8 1,000,000 
« Cost, per yard, averaging 30 cents - g2 4,300,000 
*' The rise and progress of such establishments can ex- 
cite no wonder. The inducements to industry in a free 
government are numerous and inviting. Effects are always 
in unison with their causes. The inducements consist in 
the certainty and security which every citizen enjoys of ex- 
ercising exclusive dominion over the creations of his genius, 
and the products of his labour; in procuring from his na- 
tive soil, at all times, with facility, the raw materials that 
are required; and in the liberal encouragement that will be 
accorded by agriculturists to those who, by their labour, 
keep up a constant and increasing demand for the produce 
of agriculture. 

" Every state will participate in those advantages. The 
resources of each will be explored, opened, and enlarged. 
Different sections of the union will, according to their posi- 
tion, the climate, the population, the habits of the people, and 
the nature of the soil, strike into that line of industry, which 
is best adapted to their interest and the good of the whole; 
an active and free intercourse, promoted and facilitated by 
roads and canals, will ensue; prejudices which are genera-» 
ted by distance, and the want of inducements to approach 
each other, and reciprocate benefits, will be removed; in- 
formation will be extended; the union will acquire strength 
and solidity; and the constitution of the United States, and 
that of each state, will be regarded as fountains from which 
flow numerous streams of public and private prosperity. 

" Each government, moving in its appropriate orbit, per- 
forming with ability, its separate functions, will be endear- 
ed to the hearts of a good and grateful people. 



Refiort on the Cotton trade. 141 

*' The states that are most disposed to manufactures, as 
yegular occupations, will draw from the agricultural states 
all the raw materials which they want, and not an incon- 
siderable portion also of the necessaries of life; while the 
latter will, in addition to the benefits which they at present 
enjoy, always command, in peace or in war, at moderate 
prices, every species of manufacture, that their wants may 
require. Should they be inclined to manufacture for them- 
selves, they can do so with success; because they have all 
the means in their power to erect and extend at pleasure 
manufacturing establishments. Our wants being supplied 
by our own ingenuity and industry, exportation of specie to 
pay for foreign manufactures, will cease. 

" Thevalue of American produce at this time exported^ will 
not enable the importers topayjor the foreign manufactures 
imported. Whenever the two accounts shall be fairly stated, 
the balance ascainst the United States will be found to be 
many millions of dollars. Such is the state of things, that 
the change must be to the advantage of the United States. 
Tlie precious metals will be attracted to them, the diffusion 
of which, in a regular and imiform current through the 
great arteries and veins of the body politic, will give to each 
member health and vigour. 

" In proportion as the commerce of the United States de- 
pends on agriculture and manufactures, as a common basis, 
will it increase and become independent of those revolutions 
and fluctuations, which the ambition and jealousy of foreign 
governments are too apt to produce. Our navigation will 
be quickened; and supported as it will be by internal re- 
sources never before at the command of any nation, will ad- 
vance to the extent of those resources. 

" New channels of trade, to enterprise, no less important 
than productive, are opening, which can be secured only by 
a wise and prudent policy appreciating their advantage. 

" If want of foresight should neglect the cultivation and 
improvement of them, the opportune moment may be lost, 
perhaps for centuries, and the energies of this nation be 
thereby prevented from developing themselves, and from 
making the boon which is proffered, our own. 

« By trading on our own capital, collisions with other na- 
tions, if they be not entirely done away, will be greatly dimi- 
nished. 

« This natural order of things exhibits the commencement 
of a new epoch, which promises peace, security, and re- 



142 Refiort on the Cotton trade. 

pose, by a firm and steady reliance on the produce of agri- 
culture, on the treasures that are embosomed in the earth, 
on the genius and ingenuity of our manufacturers and me- 
chanics, and on the intelligence and enterprise of our mer- 
chants. 

'< The government possessing the intelligence and the art 
of improving tiie resources of the nation, will increase its 
efficient powers, and enjoying the confidence of those whom 
it has made happy, will oppose the assailants of the nation's 
rights, the true, the only invincible Jigis, the unity of will 
and strength. Causes producing war will be few. Should 
war take place, its calamitous consequences will be miti- 
gated, and the expenses and burdens of such a state of 
things will fall with a weight much less oppressive and in- 
jurious on the nation. The expenditures of the last war 
were greatly increased by a dependence on foreign sup- 
plies. The prices incident to such a dependence will al- 
ways be high. 

" Had not our nascent manufacturing establishments in- 
creased the quantity of commodities, at that time in de- 
mand, the expenditures would have been much greater, 
and consequences the most fatal and disastrous, alarming 
even in contemplation, would have been the fate of this na- 
tion. The experience of the past teaches a lesson never to 
be forgotten, and points emphatically to the remedy. A 
wise government should heed its admonitions, or the inde- 
pendence of this nation will be exposed to * the shafts of 
fortune.' 

'' The committee, keeping in view the interests of the na- 
tion, cannot refrain from stating that cotton fabrics import- 
ed from India, interfere not less with that encouragement 
to which agriculture is justly entitled, than they do with 
that which ought reasonably to be accorded to the manu- 
facturers of cotton wool. The raw material of which they 
are made is the growth of India, and of a quality inferior to 
our own. 

" The fabrics themselves, in point of duration and use, 
are likewise inferior to the substantial fabrics of American 
manufacture. Although the India cotton fabrics can be 
sold for a lower price than the American, yet the difference 
in texture is so much in favour of the American, that the 
latter may be safely considered as the cheapest. 

" The distance of most of the western states from the 
ocean, the exuberant richness of the soil, and the variety ©f 



Refiort on the Cotton trade. 143 

its products, forcibly impress tlie mind of the committee 
wiih a belief, that all these causes conspire to encourage 
manufactures, and to give f^n impetus and direction to sjich 
a disposition. Although the western states may be T,aid 
to be 111 the gristle, in contemplation of that destiny, to 
which they are hastening, yet the products of manutac- 
tures in those states are beyond every calculation that 
could reasonably be made; contrary to the opinion of many 
enlightened and virtuous men, who have supposed that the 
inducemeius to agriculture and the superior advantages of 
that life, would suppress any disposition to that sort of in- 
dustry. But theories, how ingeniously soever they may be 
constructed, how much soever they may be made to con- 
form to tiic laws of symmetry and beauty, are no sooner 
brought into conflict with facts, than tliey fall into ruins. 
In viewing their fragments, the mind is irresistibly led to 
render the homage due to the genius and taste of the ar- 
chitects; but cannot refrain from regretting the waste, to no 
purpose, of superior intellects. The western states prove 
the fallacy of such theories; they appear in their growth 
and expansion to be in advance of thought; while the po- 
litical economist is drawing their portraits, their features 
change and enlarge, with such rapidity, that his pencil in 
vain endeavours to catch their expression, and to fix their 
physiognomy. 

" It is to their advantage to manufacture, because, by de- 
creasing the bulk of the articles, they at the same time in- 
crease their value by labour, bring them to market with 
less expense, and with the certainty of obtaining the best 
prices. 

" Those states, understanding their interest, will not be 
diverted from its pursuit. In the encouragement of manu- 
factures, they find a stimulus for agriculture. 

" The manufacturers of cotton, in making application to 
the national government for encouragement, have been in- 
duced to do so for many reasons. — They know that their 
establishments are new and in their infaiicy^ and that they 
have to encounter a competition with foreign establishments^ 
that have arrived at maturity^ that are sufifiorted by a large 
capital^ and have from the government every protection that 
can be required. 

" The American manufacturers expect to meet with all 
the embarrassments which a jealous and monopolizing po- 
licy can suggest. The committee are sensible of the force 



144 Report on the Cotton trade » 

of such considerations. — They are convinced that old prac- 
tices and maxims will not be abandoned to favour the Unit- 
ed States. The foreign manufacturers and merchants will 
put in requisition all the powers of ingenuity; will practise 
whatever art can devise, and capital can accomplish, to pre- 
vent the American manufacturing establishments from 
striking root and flourishing in their rich and native soil. 
By the allowance of bounties and drawbacks, the foreign 
manufacturers and merchants will be furnished with addi- 
tional means of carrying on the conflict, and of insuring 
success. 

'* The American manufacturers have good reason for 
their apprehensions; they have much at stake. They have a 
large capital employed, and are feelii^igly alive for its fate. 
Should the national government not aflfbrd them protection, 
the dangers which invest and threaten them, will destroy 
all their hopes, and will close their prospects of utility to 
their country. A reasonable encouragement will sustain 
and keep them erect; but if they fall, they fail never to rise 
again 4 

" The oreign manufactiirprs and merchants know this^ 
and will redouble with renovated zeal^ the stroke to prostrate 
them. They also know^ that should the American manufaC' 
turing establishments fally their mouldering fiiles^ the visible 
ruins of a legislative breathy will warn all who shall tread in 
the same jootstefis^ of ihe doom^ the inevitable desti7iy of their 
establishments, 

" The national government, in viewing the disastrous ef- 
fects of a short sighted policy, may relent; nut what can re- 
lentinjj; avail? Can it raise the dead to life? Can it give for 
injuries inflicted, the reparation that is due? Industry, in 
every ramification of society, will feel the shock, and gene- 
rations will, as they succeed each other, ieel the effects of 
its undulations. Dissatisfaction will be visible every where, 
and the lost confidence and affection of the citizen, will not 
be the least of the evils the government will have to deplore. 
But should the national government, pursuing an enlighten- 
ed and liberal policy, sustain and foster the manufacturing 
establishments, a few years would place them in a condition 
to bid defiance to foreign competition, and would enable 
them to increase the industry, wealth, and prosperity of the 
nation; and to afford to the government, in times of difficul- 
ty and distress, whatever it may require to support public 
credit, while maintaining the rights of the nation. 



Report respecting Cotton Manufactures, 145 

*' Providence, in bountifully placing within our reach, 
whatever can minister to happiness and comfort, hidicates 
plainly to us our duly — and what we owe to ourselves. Our 
resources are abundant and inexhaustible. 

"The stand that Archimedes wanted, is given to the na- 
tional and state governments — and labour-saving machine- 
ry tenders the lever — the power of bringing those resources 
into use. 

" This power imparts incalculable advantages to a nation 
whose population is not full. The United States require the 
use of this power, because they do not abound in population. 
The diminution of manual labour, by means of machinery, 
in the cotton manufactory of Great Britain, was, in the year 
18 10, as two hundred to one. 

" Our manufacturers have already availed themselves of 
this power, and have profited by it. A little more experi- 
ence in making machines, and in managing them with skill, 
will enable our manufacturers to supply more fabrics than 
are necessary for the home demand. 

" Competition will make the prices of articles low, and 
the extension of the cotton manufactories will produce that 
competition. 

" One striking and important advantage, which labour- 
saving machines bestow, is this, that in ail their operations 
they require few men; as a reference to another part of this 
report will show. No apprehensions can then be seriously 
entertained, that agriculture will be in danger of having its 
efficient labourers withdrawn from its service. 

'' On the contrary, the manufacturing establishments^ in- 
creasiyig the demand for raw materials^ will give to agricul- 
ture new life and expansion, 

" The committee, after having with great deference and 
respect, presented to the house this important subject in 
various points of view, feel themselves constrained, before 
concluding tliis report, to offer a few more observations, 
which they consider as being immediately connected with 
it, and not less so with the present and future prosperity of 
this nation. 

" The prospects of an enlarged commerce are not flat- 
tering. 

*' Every nation in time of peace will supply its own wants 
from its own resources, or from those ot other nati« ns 

*^When supplies are drawn from foreign countries, the 
intercourse winch will ensue, will furnish employ to tre 

N 



146 Refiort resfiecting Cotton Manufactures. 

navigation only of the countries connected, by their recipro- 
cal wants. 

^' Our concern does not arise from, nor can it be increas- 
ed by the limitation which onr navigation and trade vvill 
have prescribed to them, by the peace and apparent repose 
of Europe. 

" Our apprehensions arise from causes that cannot ani- 
mate by their effects. Look wheresoever the eye can glance, 
and what are the objects that strike the vision? On the con- 
tinent of Europe, industry, deprived of its motive and in- 
citement, is paralized; the accumulated wealth of ages, 
seized by the hand of military despotism, is appropriated to 
and squandered on objects of ambition; the order of things 
unsettled, and confidence between man and man annihilated. 
Every moment is looked for, with tremulous, anxious, and 
increased solicitude; hope languishes; and commercial en- 
terprize stiffens with fear. The political horizon appears to 
be calm, but many of no ordinary sagacity think they be- 
hold signs portentous of a change, the indications of a vio- 
lent tempest which will again rage, and desolate that devot- 
ed region 

" Should this prediction fail, no change for the better, un- 
der existing circumstances, can take place. Where despo- 
tism — military despotism reigns — silence and fearful still- 
ness must prevail. 

" Such is the prospect which continental Europe exhibits, 
to the enterprize of American merchants. 

" Can it be possible for them to find in that region, sources 
which will supply them with more than seventeen millions 
of dollars, the balance due for British manufactures import- 
ed? this balance being over and above the value of all the 
exports to foreign countries from the United States. The 
view which is given of the dreary prospect of commercial 
advantages accruing to the United States by an intercourse 
with continental Europe, is believed to be just. The state- 
ment uiade of the great balance in favour of Great Britain 
due from the United States, is founded on matter of fact. 

'* In the hands of Great Britain are gathered together and 
held many powers, which they have not been accustomed 
hitherto to feel and to exercise. 

" No improper motives are intended to be imputed to that 
government. But does not experience teach a lesson that 
should never be forgotten, that governments, like individu- 
als, are apt "to feel power and forget right." It is not in- 



Re fiort respecting Cotton Manufactures. 147 

consistent with national decorum to become circumspect 
and prudent. May not the government of Great Britain be 
inclined, in analizing the basis of her political power, to 
consider and regard the United States as her rival, and to 
indulge an improper jealousy, the enemy ot peace and re- 
pose? 

" Can it be fiolitic^ in any point ofview^ to make the Unit- 
ed States defiendent on any nation for sufifilies^ absolutely 
necessary for defence^ for comfort^ and for accommodation? 
" Will not the strength, the political energies of this na- 
tion, be materially impaired at any time, but fatally so in 
those of difficulty and distress, by such dependence? 

'^ Do not the suggestions of voisdom plainly shoiv^ that the 
security^ the peace^ and the hafihiness of this nation depend 
on opening and enlarging all our resources^ and drawing 
from them whatever shall be required for public use or pri- 
vate accommodation? 

" The committee, from the views which they have taken, 
consider the situation of the manufacturing establishments to 
be perilous. Some have decreased, and others have suspen- 
ded business. A liberal encouragement will put them again 
into operation with increa.ed fiowers; but should it be 
withheld^ they will be prostrated. Thousands will be re^^ 
duced to want and wretchedness, A capital of near sixty 
millions of dollars will become inactive^ the greater part of 
which will be a dead loss to the manufacturers. Our im- 
providence may lead to fatal consequences: the powers, 
jealous of our growth and prosperity, will acquire the re- 
sources and strength which this government neglects to im- 
prove: It requires no prophet to foretel the use that foreign 
powers will make of them. The committee, from all the 
considerations which they have given to this subject, are 
deeply impressed with a conviction that the manufacturing 
establishments of cotton wool are of real utility to the agri- 
cultural interest, and that they contribute much to the pros- 
perity of the union. Under the influence of this conviction, 
the committee beg leave to tender, respectfully, with this 
report, the following resolution: 

" Resolved^ That from and after the 30th day of June 
next in lieu of the duties now authorised by law, there be 
laid, levied, and collected on cotton goods, imported into the 
United States, and territories thereof, from any foreign 
country whatever, per centum ad valorem, being not le^*5 
cents per square yard. 



148 Report on the Woollen Manufacture, 

" Report of the committee of commerce and manufactures 07X 
the memorials and petitions of the manufacturers of wool 
— March 6, 18 16 

*' The committee of commerce and manufactures, to which 
was referred the memorials and petitions of the manu- 
facturers of wool, respectfully submit the following RE- 
PORT— 

" The committee having given this subject all the consi- 
deration that its importance merits, beg leave to present, 
with due respect, to the house, the result of their investi- 
gation. 

" The correctness of the following estimate the commit- 
tee are no wise disposed to question: 
<< Amount of capital supposed to be invested in 

buildings, machinery, &c. §12,000,005 

" Value of raw material consumed an- 
nually 7,000,000 
" Increase of value by manufacturing, 1 2,000,000 



" Value of woollen goods manufactured 

annually, g 19,000,00© 

,, XT 1 r 11^ Constantly, 50,000 

" Number of persons employed, -< ,x . v, ^^ ^^r. 

^ C Occasionally, 50,000 

— -. 1 oo,ooa 

" The committee having, in a report presented to the 
house on the I 3th of February last, on the memorials and 
petitions of the manufacturers of cotton, expressed their 
opinion on the policy of fostering manufacturing establish- 
ments, consider themselves relieved from the necessity of 
repeating the same argument. Every reason then urged 
for sustaining the cotton manufacturing establishments, ap- 
plies with equal force in favour of the woollen. The com- 
mittee, influenced by the same reasons, feel themselves 
bound io accord the same justice to the manufacturers of 
wool. 

" The following resolution is, therefore, with due respect, 
submitted to the house. 

" Resolved^ That from and after the 30th day of June 
next, in lieu of the duties now authorised by law, there be 
laid, levied, and collected on woollen goods importf d into the 
United States and territories thereof, from any foreign coun- 
try whatever, per centum ad valorem. 



Oneida MemoriaL 149 

« A memorial jiresented to the Senate of the United States^ 

January 7, 1818. 
" To the honourable the Senate and House of Representa- 
tives of the United States, in congress assembled, the 
petition of the inhabitants of the county of Oneida, in the 
State of New York, as well manufacturers as others, 
Respectfully Sheweth: 

" That the above county contains a greater number of 
manufacturing establishments, of cotton and woollen, than 
any county in the state, there being invested in said esta- 
blishments at least 600,000 dollars. 

" That although the utmost efforts have been made by the 
proprietors to sustain those establishments, their efforts have 
proved fruitless, and more than three-fourths of the facto- 
ries remain necessarily closed, some of the proprietors be- 
ing wholly ruined, and others struggling under the great- 
est embarrassment. 

" In this alarming situation, we beg leave to make a last 
appeal to the congress of the United States. While we make 
this appeal, the present crisis, the extensive embarrass^ 
ments in most of the great departments of industry, as well 
as the peculiar difficulty in affording immediate relief to 
manufacturers, are fully seen and appreciated. Yet your 
petitioners cannot believe that the legislature of the union 
will remain an indifferent sfiectator of the wide^sfiread ruin 
of their fellonv citizens^ and look on^ and see a great branch 
of industry^ of the utmost importance in every community y 
prostrated under circumstances fatal to all future attemfits 
at revival without a further effort for relief We would 
not magnify the subject, which we now present to congress 
beyond its just merits, when we state it to be one of the 
utmost importance to the future interests and welfare of 
the United States. 

" Before we proceed farther, and at the very threshholdi 
we disclaim all legislative patronage or favour to any par- 
ticular class or branch of uidustry at the expense of the 
other classes of the community. We ask of congress the 
adoption of no measure, for the relief of manufacturerS| 
which is not deemed consistent with sound national policy, 
and the best interests of the United Stales at large. Bnt if 
a compliance with our prayers be tue dictate of wisdom, 
and for the public good; if our application be jusiified by 
the examples of all wise and patriotic states; if no gov em* 
ment of modern £urofie is so short-sighted, or regardless of 

N 2 



150 Oneida Me?noriaL 

its duties^ as not to constantly watch over^ and yield a stea- 
dy and protecting sujifiort to the manufacturers of the state ^ 
we humbly hope this appeal in behalf of American manu- 
factures will not be made in vain. 

" That clothing for our citizens in peace, and our army 
and navy in vv^ar, are indispensable, and that the necessary 
supply should be independent of foreign nations, are posi- 
tions that will be controverted by none. The last war afford- 
ed most lamentable proof: your soldiers, exposed to the 
inclemencies of a northern climate, were at times found 
fighting m their ranks almost naked. It will not escape 
observation, that national collision and hostility are most 
likely to arise with that nation from whom our supplies are 
principally derived, and that the operations of war must be 
prosecuted on the ocean; hence, regular supplies being 
eut off, smuggling, violations oi law, with all tlie concomi- 
tant evils exfierienced in the late war^ are the certain conse- 
quences. The same disgraceful scenes are to be acted over and 
over again, to the deep reproach of the country. Jf the fire- 
sent manufactories are suffered to fall ^ the government will 
look in vain for mta7is to avert those calamities. Surround- 
ed with many embariassmeuts, government, during the war, 
saw fit to encourage manufacturing establishments; and 
those who eraburked their capital, it is humbly conceived, 
were warranted in the expectation of such contir.ulng sup- 
port of govtrnment as should protect their interest against 
that foreign rivalship and hostility which is now operating 
to th«ir ruin. They had a right, as they conceive, to ex- 
pect this from what the government owed to itself, and to 
the independence and best interests of the country, as well 
as from the example of other nations in like circumstances. 
<' In reviewing the discussions on this great question, 
your peiiiiOi)ers feel themselves justified in saying, that 
the question has not been at all times fairly met on its true 
merits. We have been constrained to witness alarm sound- 
ed, as though a new principle was to be introduced, and 
the country now for the fiist time, taxed for the mere bene- 
fiX. of manufacturers. What can be more untrue and unjust? 
We ijeed ho\ rcmitid the uonouiable the congress of the 
United States of what is known to all, that fiom the first 
cstatiiisunierjL oj lijt ^over;nnent, special regard has been 
had, in hiyiiiv; impost di»d taxes, to the protection of domes-' 
Mc manufaciures^ by increasing the duties on imported ar- 
irtcles coming in competition. Again, the tivrifi, in pro-^ 



Oneida MemoriaL \5\ 

tecting manufactures, has been represented as taxing the 
farmer and planter for the benefit of the manufacturer; and 
hence, attempts have been made to excite popular preju- 
dice against the latter. We need not dwell on this topic, 
in showing how unjust to individuals and injurious to the 
country the charge is. As it respects the manufacturing 
districts oi the United States, there is no distinct class of ma- 
nufacturers, no separation of the manufacturer and farmer; 
it is the farmer himself who is the manufacturer; he invests 
his money in manufacturing stock. With the exception 
of a few factories; in or near the great towns, by far the 
greater part of manufacturing stock will be found in the 
hands of the farmers. 

*' Between different districts or states, one iiianufacturing 
and the other not, a different question arises, which resolves 
itself into a mere equality or apportionment of taxes on the 
different parts of the union; and here it will be seen, on a 
view of the whole system of impost and taxes, that no in- 
justice is done, as the manufacturing districts have^ and 
still do^ contribute their full proportion to the public trea- 
sury. Of the internal taxes, it will appear, that they have 
paid an amount greatly beyond the numerical standard or 
rule of apportionment prescribed by the constitution. The 
fact is not here mentioned for the purpose of complaint; 
but to show how fallacious it is to select the duty on a par- 
ticular article, to settle the question of equality in the ge- 
neral apportionment of taxes. We might again confidently 
appeal to the tariff of impost, and ask if the duty is not 
greater on many articles than on imported cloths (with the 
exception of certain coarse and almost useless cottons of 
the East Indies.) This is believed to be the case with 
most of the specific duties, and eminently so in some in- 
stances. Were the government to proceed much farther 
than is now contemplated, and bestow premiums for the 
encouragement of particular branches of industry, examples 
to justify the measure would be found in the wisest and 
best administered governments. While the provision in 
the constitution prohibiting any duty on exports^ favours 
the great staple productions of the south, it injures the do- 
mestic manufacturer, and is subversive of the great prin- 
ciple adopted by most nations, to restrain the exports of the 
raw material necessary in manufactures. But neither of 
this provision do your petitioners complain. 

^' We hope to find excuse in the importcjnce of the sub- 
ject, for submiting to the consideration of congress the 



152 Oneida Memorial* 

following principles of political economy, which "have been 
adopted by the most enlightened governments, and are 
deemed not altogether inapplicable to the United States: 

" That the fiiiblic good requires of government to restrain 
by duties ^t he imfiortation of articles which may be produced 
at home^ and to manufacture as much as possible of the raiv 
material of the country, 

<' That the branches of industry ^ particularly necessary or 
useful to the independence of the co7n?nunity^ ought to be 
encouraged by government. 

" That the most disadvantageous commerce^ is that nvhich 
exchanges the raw material for manufactured goods, 

'* That any nation which should open its ports to all for- 
eign importations^ without a reciprocal firivileg^y would 
soon be ruined by the balance of trade. 

" The policy of Great Britain, in support of which, no^ 
wars, however bloody, no expense, however enormous, are 
too great a sacrifice, ought never to be lost sight of by the 
United States. That nation assumes to manufacture for 
all nations^ but will receive the manufactures of none. So 
tenacious, so jealous is she of the first dawnings of manu- 
factures elsewhere, that she binds even the hands of her 
own colonists. The jealousy of parliament was excited, 
nearly a century ago, by the petty hat manufactory of Mas- 
sachusetts; and an act of parliament actually passed in the 
reign of George the Second, prohibiting the erection of 
furnaces, in British America, for slitting iron. 

** The great Chatham, the least hostile to British Ame- 
Hca, of British ministers, in his speech in the house of 
f^rds, on the address to the throne, in 1770, expressed his 
utmost alarm at the first efforts at manufactures m America. 

" Mr. Brougham, a distinguished member of the British 
!)arliament, recently declared in his place, that it was well 
vorth while, at the close of the late war, to incur a loss on 
he exportation to the United States, in order to stifle in 
he cradle our rising manufactures. It is in vain for any 
nan to shut his eyes againsi the active rivalship and per- 
,evering hostility of British manufacturers: and when the 
»apiial, the deep-rooted establishments, the improved ma- 
' jhinery, and the skill of the British maiiufacturer, protected 
^ he always is by the government, are considered, it ought 
ot to excite surprise that the American manufacturer, 
athc.ui tlie support of his government, is found unequal to 
he contest. But yielding to manufactories reasonable sup- 



n eida Me m o via L 153 

port in their infancy, tiie government, will, at no distant 
period, find them able to defend themselves against foreign 
competition and hostility, and at the same time make am- 
ple returns to the nation for its protecting kindness. 

" It was the opinion of Mr. Hamilton, former secretary of 
the treasury of the United States, as well as of sir James 
Stuart, that no new manufactory can be established^ in the 
present state of the world ^ without encouragement from go* 
lernment, 

" Jt cost the English fiarliament a struggle of forty years^ 
commencing in the reign of Edward III, to get the better 
of the established manufactures of Flanders, It is helieved 
that much less encouragement from government would 
place the manufactures of the U. States on a secure foun- 
daiion. While the writers of that nation are seen to highly 
commend the principle of Adam Smith, that industry ought 
to be left to pursue its own course^ without the interference 
of the legislator, the government has^at all times^ find un- 
der every vicissitude^ turned a deaf car to the lesson^ as 
though it were intended for other nations; and carried 
legislative regulations into every department and avenue of 
industry. The British statute book groans under these 
regulations. The policy of the government has proved tri- 
umphant; immeasurable wealth flowed in upon the nation, 
giving it a power and control over other nations never be- 
fore attained, nor so long enjoyed, by any people so incon- 
siderable in numbers. 

'' But let no one imap:ine that a general system of manu- 
factures is now proposed to be intioduced into the United 
States. We would be understood as limiting our views 
to the manufactories alrtady established: to save those 
which have not already fallen^ from the ruin which threat' 
ens them. 

" After all that the present manufactories can supply^ 
there will reinain to foreign imp.ortation an amount,^ it is be- 
lieved,, eqtial^ if not exceeding the means of the country to 
pay for. That importation, let it be remembered, will be 
mostly from a country which shuts her ports against the 
productions of the United States, and keep them so unless 
the necessities of her manufactories, or hunger and sedition 
open them; and then the fatal suspension often proves, as 
the experience of the ili-fated shippers of bread stuffs, the 
present year, will attest, a more decoy to ruin. Lord Shef- 
field, in the year 1783, declared, that except in time of 



ISA Oneida Me?noriai. 

^var, there never was a market for American wheat in Great 
Britain, exceeding three or four years in the whole. 

" There was a time when a balance of trade, believed in 
l)Oth countries to be generally against the United Sttites, 
was, in some degree, satisfied or counter-balanced by a fa- 
vourable trade with the West Indies: but a recent change 
of policy in the British councils has cut off that resource, 
and the parent state prefers exposing her colonies to star- 
ving, rather than open her ports to American commerce. 

" Jl is obvious how much that government presumes on 
its advantages over us, on the predilection of our citizens 
for British manufactures, and the influence of the liberal 
purchases in the south, of the material for her cotton ma- 
nufactures. 

" We hope to be excused in repelling the unwarrantable 
imputation bestowed on manufactories of woollen ana cot- 
ton as being injurioiis to thf health and morals of thr com^ 
munity. On this point we may content ourselves with re- 
ferring to the healthful sites of our factories, the spacious 
work-rooms, (required by the necessary machinery,) and 
appeal to every man who has visited a factoiy, for testimo- 
ny against the imputation. What is the experience on the 
subject? Scotland manufactures not only what is required 
for its inhabitants, but about five millions of dollars annually 
in the article of cotton alone, for exportation; and yet, in 
both its physical and moral character, that nation sustams 
a high elevation. We look in vain for evidence that the 
arms of Scotchmen have been withered by their manufac- 
tories, nor do we recollect the field of battle in Europe, 
where the arms of any nation were found stronger in conflict. 

" To swell the tide of prejudice against manufactures, 
it is said that unreafionahle firices for goods were deinanded 
at the fLf:riod of the late war. To reason with such objections 
would be a mere waste of time. We might ask what mer- 
chant^ mechanic^ or farmer, in any age or country^ ever for- 
bore to raise his /unices according to the demand in the mar- 
ket? It enters into first principles. Did the importer treble 
his first costs on his cloths, even on smuggled goods, and 
does he make the charge of extortion ai;,ainst manufactu- 
rers? The war unl^in.^ed every thing, and changed the 
whole order of society and course of business. 

" It might have been expected that the firesent fallen con- 
dition of manufacturers would have soothed prejudice and 
disarmed hostility. With all their alleged war prof ts^ there 
are now none so poor. Is it not seen, that the destruction 



Oneida Memorial, 155 

of the present manufactories must inevitably produce the 
same evils of extravagaiu prices in the evtnt of a future 
war, as were experienced in the last? 

*' As to the in^puted effect of the tariff, in enhancing the 
prices of imported goods, it is believed that goods were 
never so low as under the operation of the present duties; 
and so far as competition between domestic and foreign 
goods has contributed to this, credit is justly due to our 
manufacturers. 

" It is objected that the entire industry of the country 
may be most profitably exert .^d in clearing and cultivating 
our tixiendcd vacant lands. But nvhat does it anuiJ the far^ 
mer\ when neiihtr in the nation from which he purchases 
his goods^ nor elsewhere^ can he find a market for his abun- 
dant crops? Besides, the diversion of labour fiom agri- 
culture to manufactures, is scarcely perceptible. Five or 
six adults, with the aid of children, will manage a cotton 
manufactory of two thousand spindles. 

" From the gloomy condition of the manufacturers, the 
mind turning to another quarter, is cheered with the bright- 
est pro5[jects of others. In the more southern states, it is 
believed, that the amount received, during the last year, 
from the export of two or three articles of agricultural pro- 
duce only, exceeds forty millions of dollars. 

" .4n appeal is made to the equity^ to the patriotism of the 
southern statesman: his aid and co-operation is invoked for 
the relief of the suffering manufacturers of the northern and 
middle states. 

" In conclusion your petitioners humbly pray, that provi- 
sion may be made by law, for making the present duties on 
imported woollens and cottons F^RMAif}LNT; for prohibiting 
the importation of cotton goods from beyond the Cape of 
Good Hcpe^for consumption or use in the United States^(2iC'' 
cording to the exa^iTiple of several European governments;) 
for restrainin,^- auciion sales of goods: and for the more ge- 
neral introduction and use of domestic goods in the army 
and navy in the United States." October l, 18 IT. 



No. XI. 



Philadelphia.^ June 17, 1819. 

Mistaken opinions having been long entertaii;cd ot an 

hostility between the interests of manufacturers, and those 



156 State of trade in ike United States. 

of merchants and agriculturists, it is supposed that the sys- 
tem we advocate is calculated to sacrifice those of the two 
last to the first. Nothing can be more foreign from the 
truth. Our views are decidedly favourable to commerce 
and the mercantile interest: because the commerce to 
or from a ruined country, such as ours will be under its 
present policy, affords little advantage to its merchants; and 
our plans tending to restore the prosperity, must of course 
improve the commerce, of the United States, whose indus- 
try has been sacrificed to that of nations distant tVom us 
thousands of miles. We are equally and as decidedly the 
frierids of agriculture; because our object is to secure to the 
farmer and planter for their productions a domestic market, 
which cannot fail them, instead of the precarious dependence 
on foreign ones, subject to unceasing fluctuations, and 
blasting the fairest hopes of the cu'tivatoi and merchant. 

It will doubtless appear extraordinary, but it is never- 
theless true, that the system we advocate is calculated to 
promote as well the advantage of the merchants of Great 
Britain and of those other foreign nations with which we 
trade, as that of the United States. 

The commerce of a count^ry impoverished as ours is, can 
be of little advantage to a trading nation, which loses all its 
profits, and part of its principal by bankruptcy. The defi- 
ciency of remittances, which is daily increasing, cannot fail 
to produce destructive consequences in Great Britain. 
Thousands in that country with shattered fortunes, will have 
to lament the infafuation that led them to inundate the 
United States with their merchandize, whereby they calcu- 
lated on making splendid fortunes, which disappeared '^ like 
the baseless fabric of a vision," and left *' not a trace behind," 
but disappointment and ruin. 

1 he British merchants disrecrarded the valuable lesson 
of Esop's Fable of the goose that laid the golden eggs. 
They killed the goose by their determination to enjoy all 
the benefits of our trade at once. 

Having no mines of gold or silver, no pearl fisheries, we 
have no means of paying for our foreign importations but 
by the fruits of our industry. And the combined operation 
of the fatal impolic) of our tariff, the cupidity of our impor- 
ters, and the infatuation of the British merchants, has so 
completely paralized our industry audio? poverished the coun- 
try, as to render us utterly unable to pay. The destruction of 
Spanish industry did not produce the same effect on her 
commerce with other nations. Her mines furnished ample 



Erroneous Policy. 157 

means of payment. But having, we repeat, no mines, the 
destruction of our industry is almost as pernicious to Great 
Britain, or any other nation with which we trade on credit^ 
as to ourselves. 

This plain view of our affairs, demands the most serious 
attention from the public. We are so thoroughly saiisfied 
of its correctness, that were wc agients for the promotion of 
the English interest, and had supreme power over the tariff, 
we would have it so modified as to protect national industry; 
for even if that industry were carried to double or treble 
its present extent, there would be, as stated in the Oneida 
memorial, ample room for the importation of as much goods 
as we can pay for — more especially in the present prostrate 
state of the prices of our staples. 

This theory receives the most ample corroboration from 
the present state of our commerce, which is nearly as cala- 
mitous as that of our manufactures. Our vessels are either 
rotting at our wharves, or dispatched on voyages which 
even at the coinniencement afford hardly any hope of profit, 
and which too generally close with heavy and ruinous losses. 
It has been computed by intelligent merchants, that the 
mercantile capital of this country has been diminished se- 
venty millions of dollars, since the peace. Agriculture has 
begun to partake of the general calamity. 

It is painful to reflect, fellow citizens, how numerous and 
how ruiuous are the errors prevalent on that im[)ortant 
portion of poiirical economy, which regards the proteciion 
of national industry employed in manufactures. In the dis- 
cussions that arose in congress on the subject of the tariff, 
there were few, even of the best informed members (*f that 
body, who appeared to regard the protection afforded to 
manufacturers in a national point of view. They considered 
the duties imposed for this purpose, according to the doc- 
trine of colonel Taylor, as taxes levied on the agriculiural 
part of ihe community, solely for the benefit of the manu- 
facturers — and as proofs of the munificence of the former. 
One ardent member of the house of representatives, on the 
rejection of a motion for reducing the duties on imported 
cottons, made an attempt to have the decision re-considered, 
in order to set aside tiie votes of some members ot the ma- 
jority, said to be concerned in cotton establishments.* '^he 

'^ *' Mr. Wright," ex-governor of .Maryland, '* aftr-r declaring- 
his belief that many members had voted on the question, who, from 

o 



158 Protection of Agriculture. 

inadmissibility of this procedure is as obvious as the attempt 
was novel. Were his plan adopted, the merchants out^ht to 
retire on all questions in which commerce is involved — the 
farmers and planters on those connected with agriculture — 
and the gentlemen of the bar on all that respect the judi- 
ciary. In the vehemence of the gentleman's zeal against 
manufactories and manufacturers, he wholly overlooked the 
incongruity of the measure he recommended. 

Under a well organized government, administered with 
due regard to duty, the legislature ought to ** look with 
equal eye^' on all classes and descriptions of the nation — and 
therefore, the interests of the manufacturing part of the 
community deserve as much and as pointed attention as 
those of any equal number of citizens. — But how important 
soever the subject may be in this point of light, it presents 
itself under another aspect, transcendently higher. And an 
enlightened statesman or legislator will take a far more 
comprehensive view of it, as it regards the general interests 
of the nation, which are deeply interwoven with it. 

It is frequently asked, why do not the agriculturists and 
the merchants demand protection? And if they do not de- 
mand it, why is it to be given to the manufacturers? 

We reply, that both agriculture and commerce are pro^ 
tected, more particularly commerce, as will appear in the 
sequel. 

The agriculture of the United States has not required 
much protection. The fertility of our soil, the immense ex- 
tent of our country, and the great proportion of our citizens 
engaged in agricultural pursuits, render our crops so abun- 
dant, and our distance from other nations so great, that there 
is little temptation for foreigners to seek our markets with 
the produce of the earth. Our farmers have hitherto gene- 
rally had ready markets and high prices. There has not 
been any serious interference with them; nor until the im- 
portation of Bengal cotton, with our planters. Congress has, 
however, extended its watchful care over their interests. 
Every article, with hardly an exception, raised by the agri- 
culturist, is subject to a duty which is sufficient for its pro- 
tection: We annex a list of the most prominent. 

bein^ interested in its decision, were of right excluded by a rule of 
the house, submitted a resolution to reject the votes of those mem- 
bers interested in any manufactory of cotton. a" An adjournment 
took place, which prevented a decision on the resolution — which 
^oes not appear to have been resumed. 

a Weekly Register, \-ol. s. page 95. 



Protection of Agriculture. 



159 



Protecting' Duties on agricultural production a* 



Wheat, 






Peas, 


Hams, 




Barley, 






Boards, 


Apples, 




Oats, 






Hay, 


Pears, 


15 per 


Rye, 






Pitch, 


Nuts, 


cent, ad 


Rice, 






Rosin, 


Apricots, 


>valorem, 


Flour, 






Tar, 


Plums, 


and one, 


Indian corn. 




Turpentine, 


Peaches, 


tenth. 


Tobacco, 






Pork, 


Onions, 




Beans, 






Beef, 


Butter, 




Cheese, 9 


cents 


\ 




&c. &c. 




Cotton, 3 


cents 


per lb. 







Hemp, 150 cents, per 112 lbs. 

We trust it will be admitted, that the fruits of the earth, 
raised by hard labour, to which machinery cannot afford 
any aid, are better protected by a duty of fifteen per cent, 
than cotton fabrics, in which the rival manufacturers have 
such immense advantages by machinery, would be at forty 
— and more particularly than linen and silk are at sixteen 
and a half, or pottery at twenty two per cent. 

" The duties on cheese, cotton, and hemp, deserve parti- 
cular attention. They are fair examples of the system of 
protection, which the manufactures have sought in vain. 

Cents. 
Gloucester cheese is sold in England at about 10c?. 

equal to 18 1-2 

Cheese in Holland averages about 25 guilders per 

100 lbs. equal per lb. to - - - - 10 

In France it is about 76 cts. per killogram, or 1 12 lbs. 

English, equal to - - - - - 13 

Thus English cheese pays a duty of about 50 per cent. — 
Dutch 90 — and French 70 — averaging on the whole 70 per 
cent. This is very nearly equivalent to an absolute prohi- 
bition. 

In the East Indies, cotton is sold at from three pence to 
seven pence sterling per lb. or an average of about 10 
cents. The duty is three cents, which is thirty per cent. 

Nothing but the great distance from Hindostan, and the 
consequent heavy expense of transportation, could prevent 
the cotton planter from sharing the lamentable fate of the 
cotton manufacturer, and being driven out of his own mar- 
ket, even with a duty 30 per cent, of the cost of the article. 
Attention to the culture in the East Indies, with the advan- 
tage of having gained possession of the seeds of our best 



160 



Protection of Commerce, 



species, render it almost certain that the cotton planters 
will at no distant day, be under the same necessity of soli- 
citing prohibitions or prohibitory duties, as the cotton and 
woollen manufacturers were in 1816. We hope when they 
do thus apply, they will be treated with more attention, and 
their application be more favourably received than those of 
the manufacturers experienced. We hope for this result 
not merely for their sake, but for the general prosperity of 
the nation. 

Hemp is sold in Russia at about 1 1 4 dollars per ton. 
The duty is, therefore, about 26 per cent. 

We flatter ourselves, therefore, that it will be readily 
conceded, that agriculture is protected. Except on the 
three articles last enumerated, the duties are, it is true, 
moderate. But they are far higher in proportion to the 
chance of competition than most of the duties on manufac- 
tured articles. Should an increase of duties, however*, be 
necessary, we trust it will be adopted, and without oppo- 
sition. 

That the merchants have enjoyed a large portion of the 
fostering care and protection of congress cannot be doubted. 
The statute book is full of laws enacted for their benefit. 
They have always had powerful advocates on the floor of 
that body, who never failed to state their grievances, and 
to propose the proper remedies. They were ever heard 
with attention, and their requests generally accorded. We 
annex a list of some of the laws passed in their favour. 

I. 1789. An act passed at the outset of the government 
for regulating tonnage which imposed 30 cents on Ameri- 
can built vessels, owned in whole or in part by foreigners^ 
and 50 cents on foreign vessels; while vessels belonging to 
the United States were subject only to six cents.* 

il. 1789. In order to secure to our merchants the 
whole of the China trade to and from this country, a 
decisive advantage was given them as may be seen by the 
following contrast-— 



Duties on teas Imported from China.t 


In American 

vessels. 
Cents. 


In foreign 
vessels. 
Cents, 


Bohea tea - - - - Per lb. 

Souchong and other black teas 
Hyson ------ 

All other green teas . - - - 


6 

10 
20 
\2 


15 

22 
45 

27 



* Laws United States, vol. ii. p. 6. f lb. 3, 4. 



Protection of Commerce. 161 

This immense difference of duty, however, does not at 
present exist — but there still remains sufficient to shut out 
foreign rivals, viz. 



Existing duties on teas imported from China. 


In American 
vessels. 
Cents, 


In foreign 

vessels. 

Cents. 


Bohea - - - - Per lb. 
Souchong and other black - - - 
Hyson and Young Hyson - - - 
Hyson skin and other green - - - 
Imperial, Gunpowder, and Gomee 


12 

25 
40 
28 
60 


14 
34 
66 

38 
68 



III. 1789. A discount of ten per cent, allowed on all 
import duties upon goods imported in vessels built in and 
owned by citizens of the United States, or in foreign vessels 
owned by them.* 

IV. 1789. Five cents bounty on every quintal of dried, 
or barrel of salted fish, and on every barrel of salted provi- 
sions.! 

V. 1789. Fifty cents per ton on each entry laid on all 
vessels not built within the United States, or owned by a 
citizen or citizens, employed in the transportation of the 
produce or manufactures of the United States coastwise. f 

VI. 1792. One dollar and a half per ton allowed to ves- 
sels engaged in the fishery, ifof twenty tons and below thirty 
— and two dollars and a half, if above thirty tons. One 
dollar per ton on all fishing boats above five and below 
twenty tons.[| 

VII. 1794 Ten per cent, additional on the duties upon 
goods imported in vessels not of the United States.§ 

VIII. 1802. An act for the protection of the seamen and 
commerce of the United States against the Tnpolitan crui- 
sers.^ 

IX. 1 804. An act further to protect the commerce and 
seamen of the United States against the Barbary powers.** 
By this act, an additional duty of two and a half per cent, ad 
valorem was imposed on goods imported in American ves- 
sels—and ten per cent, additional on those duties upon im- 
portations in foreign ones. One million of dollars were 
appropriated for the purpose of carrying on the war against 
the Barbary powers. 

* Laws of the U. States vol. ii. p. 5. f Ibid. J Idem p. 6. 
Pdem, p. 241. 6 Idem, p. 437. IT Idem, hi. p. 447. **Idem, p. 6^3, 

q2 



1612 Protection of Commerce, 

X. 1812. An act for imposing ten per cent, extra on the 
duties upon goods, wares, and merchandize imported in 
vessels not belonging to the United States; and likewise 
laying an additional duty of one dollar and a half per ton on 
all such vessels.* 

XL 1813. An act for paying a bounty on the exporta- 
tion of pickled fish, and on all vessels employed in the 
fishery .f 

XII. 1817. An act subjecting to a tonnage duty of two 
dollars per ton, all foreign vessels arriving from ports to 
which vessels of the United States are not allowed to trade.}: 

XIII. 1817. An act prohibiting the importation of all 
goods, wares, and merchandize in foreign vessels, except 
those of the nation in which they are produced; prohibiting, 
under penalty of forfeiture, all vessels, belonging in whole 
or in part to foreign powers, from carrying on the coasting 
trade, and limiting the bounties on the fisheries to vessels 
of which the officers and three fourths of the crews are ci. 
tizens of the United States.§ 

XIV. 1817. An act prohibiting the importation of plaster 
of Paris from any country, or its dependencies, from which 
the vessels of the United States are not permitted to bring 
that article.ll 

XV. 1818. An act prohibiting the entry into our ports 
of any vessels belonging to subjects of his Britannic majesty 
from any port or place in his colonies that is closed against 
vessels of the United States.l 

XVI. American vessels entering from any foreign port 
or place, pay - - . per totij cents 6 

All foreign vessels from ports where the American 
flag is not interdicted - - - - 100 

Dutch vessels from places where the American flag is 
interdicted** - - - - . /ler ton^ cents 225 

The* Harrow limits we are obliged to prescribe to our- 
selves, prevent us from enlarging on the above list. A cur- 
sory view of it will satisfy the reader how undeviating an 
attention was paid Jto the subject — and that no opportunity 
was ever lost, to counteract the hostile policy of foreign na- 
tions, when directed against the mercantile interest. 

The coasting and China trade were fully and com- 
pletely secured to our merchants, the first by absolute pro- 

^ Idem, vol. iv. p. 459. f Iclem, p. 584 J Idem. vol. vi. p. 200. 
5 Idem, p. 213. B Idem, vol. vi. p. 227. IF dem. 
^' * Tariff p. 25. 



Frotection of Commerce. 16# 

hibition, and the second by duties undeniably equivalent to 
a prohibition. And whatever was necessary to secure them 
their full proportion of other navigation has been done. The 
specious conDplaint of" sacrificing the interests- ay the many 
for the benefit ofthefenv^^ with which the papers have been 
filled, and which has furnished such a fertile theme to 
orators in congress and newspaper writers, was never heard, 
even in a whisper, in the case of the merchants. No.— It 
was reserved to defeat the just demands and expectations 
of the manufacturers. 

In those laws and others of similar character to be found 
in our statute books, we behold a spirit worthv of the I'e- 
presentatives of a great nation, determined to guard the in- 
terests of a respectable portion of their constituents — and 
affording an ample and adequate protection, which com- 
pletely guaranteed the promise it held out. The miserable 
idea of sacrificing native wealth, industry, and talent — of 
hiring vessels, according to Adam Smith's destructive 
theory, " where they could be had the cheafiest^^ was spurned 
with the contempt it deserved. Those wise laws, which 
do honour to the legislature of the United States, saved the 
navigation of this country from destruction. But for them, 
our shipbuilders would have been ruined, as so large a por- 
tion of the cotton and woollen manufacturers have been— «• 
and our shipping would have rotted in our ports, while our 
navigation was carried on by foreigners, as so large a por- 
tion of our clothing is now manufactured by them. 

A statement of the results of this wise policy, cannot 
fail to be satisfactory — 

In 1789 the British vessels which Ifi 1799 those that entered 

entered inwards in Great Britain, inwards were only At 

engaged in the trade of the United 

States, were 253 

Those cleared for the United States 358 Outwards - - 57 

In 1790 the American vessels engag- In 1800 there were 1067* 

ed in the British trade were only 464 

"In 1816, 561 vessels engaged in the trade of the United 
States entered inwards in Great Britain; of these only ^^ 
were British. 

" In the same year, of 575 entered outwards, only 39 were 
British.t" 

* Seybert's Statistics, p. 295. f Ibid. 



164 Protection of Commerce » 

Under this fostering system, the tonnage of the United 
States made as rapid progress as ever was made by that of 
any nation in the world. 

Tons. 
In 1789 it was .... - 201,562 

1790 - 478,37/ 

1792 - - - . - - 564,437 

1794 628,816 

1796 - 831,700 

1798 - " . - - - 898,328 

1801 *1,033,218 

The contrast between the magnanimous spirit that 
presided over those laws — and the miserable and blighting 
spirit that dictated the twenty-seven and a half per cent on 
cottons and woollens — twenty-two per cent, on pottery — 
sixteen and a half per cent, on linens and silks, &c. &c in 
order to enable us to " buy goods where they could be had 
cheapest*"^ is as astonishing as it is lamentable. On the one 
side we see a dignified policy, honourable to the nation — 
and on the other a policy unworthy of a rising empire, which 
has produced the most disastrous consequences. 

A few lines more on the subject of the protection of 
commerce. The navy of the United States, which has been 
created chiefly for that purpose, has cost in 20 years above 
56,000,000 of dollars.t The last war with Great Britain, 
which arose wholly from the duty of protecting commerce, 
cost, exclusive of the naval department, 852,000,0004 

The expense of foreign intercourse, that is, for ambas* 
sadors, charges des affaires, consuls, agents, bearers of des- 
patches, 8cc. &c. for twenty-four years, have been 10,872,494 
dollars, or above 450,000 dollars per annum, (Seybert, 71 3.); 
and for the Barbary powers, in twenty years, 2,457,278 
dollars, or above 120,000 dollars per annum. (Ibid.) Thus, 
in these two items, there is a fiositive disbursement ^ for the 
protection of commerce, of above half a million of dollars 
annually: whereas, the government has never paid one dol- 
lar, as bounty or premium^ to foster, protect, or promote 
the productive industry employed in manufactures; and has 
never laid a dollar of duly, beyond what was called for by 
the exigencies of the treasury. 

* Sey berths Statistics, p. 317. f Weekly Register, and Seybert's 
Statistics, p. 706. \ Idem, p. 716. 



Abandonment of Manufactures, 165 

It is painful lo state, but candour calls on us to state, 
that a portion of the merchants, who have thus enjoyed such 
a high degree of care and protection, bestowed at such 
enormous expense, have too generally been averse to af- 
fording adequate protection to their fellow citizens, engaged 
in manufactures; for which they suffer now in comn)on with 
the manufacturers, by the consequent universal calamity of 
Ihe times and impoverishment of the country. 

Let us now turn from the fostering care bestowed on 
commerce — the various statutes enacted in its favour — the 
expense incurred for that purpose — the complete protection 
it has experienced, to the situation of the manufacturer. Has 
he had his equal share of the care and attention of govern- 
ment? No. The paternal care of their own manufacturers, 
generally exercised by other governments, shuts him out of 
nearly all the foreign markets of the world. And the im- 
policy of our system leaves him at home at the mercy of ri- 
vals from every quarter of the globe, who, availing them- 
selves of the advantage of superior capital, and their own 
governmental protection, vanquish him in his own market, 
and reduce him to bankruptcy. 

That the manufacturers, particularly those of cotton and 
woollen fabrics, have not been protected from foreign rival- 
ship — that they have been victims of an inadequate tariff, is 
palpable from the immense quantities of rival foreign arti- 
cles with which our markets have been inundated; from the 
ruin of so many respectable citizens who invested large ca- 
pitals in manufacturing establishments; and from the great 
proportion of those establishments that are wholly suspend- 
ed in their operations; many of which have been sold for 20, 
30, or 40 per cent, of the first cost. 

Of these facts the proofs are within the knowledge of 
the great mass of our citizens. They admit neither doubt 
nor denial. 

Thus, while the manufacturer appears to enjoy the ad- 
vantages of a free government, he is, we repeat, incontesti- 
bly in a worse situation, so far as respects the acquisition 
of property, and protection of industry, two principal objects 
of good government, than the subjects of the monarchs of 
Europe, whose situation he must regard with envy. The 
English, the French, the Russian, the Austrian, and the 
Danish manufacturers are generally secured in the home 
market. 

There is but one way to account for the care bestowed 
on the commercial, and the neglect of the manufacturing 



1 66 



Striking Contrast. 



interest. The former has been at all times v/ell represented 
in congress, and the latter never. Ii is, as we have observed 
on a former occasion, nearly as much unrepresented in that 
body as this country in its colonial state was in the British 
parliament. 

A CONTRAST. 



The •Agriculturist* 
With hardly an ex- 
ception, secured in the 
home market. Nearly 
all the foreign markets 
in the world open to 
him. 



The Manufacturer. 

Shut out of nearly 
all the foreign markets 
in the world, and beat- 
en out of his own for 
want of adequate pro- 
tection. 



The Merchant. 
The coasting trade 
secured to him by ab- 
solute and unqualified 
prohibition. Every 

possible advantage that 
the government caft 
give, afforded to his 
shipping in the foreign 
trade. 



We appeal, fellow citizens, to your candour, to your 
justice, whether there can be a reason why the farmer should 
be protected by duties, which, in most cases,* are nearly 
equal to prohibitions — and the merchant have the coasting 
and China trade secured to him, the former by absolute 
prohibition, and the latter by duties equivalent to prohibi- 
tion; while there is no one manufactured article whatever 
prohibited, and while the cotton and woollen manufacturers 
(to pass over others) are sacrificed to foreign rivals, by the 
utterly inadequate duty of twenty-seven and a half per cent? 
This is a vital point — and demands the most serious reflec- 
tion. The whole question at issue may be said to turn on 
it. We put it to the understanding of our fellow citizens 
throughout the union — and to the consciences of the mem- 
bers of congress. If any adequate reason can be assigned 
for this very unequal distribution of protection, let it be pro- 
claimed, in order to silence complaint. 

That several extensive establishments have survived the 
general wreck — that they are still in profitable operation — 
is no disproof of our allegations. Their proprietors have 
generally had some peculiar advantages in point of capital 

* Hemp, as already stated, pays about 26 per cent. — cheese 70 — cotton 
30— -and all other agricultural productions 16 1-2 It is obvious that those 
duties are far more efTectual than 70 per cent, would be on pottery, glass bot- 
tles, or linen — the two first of which are subject to 22, and the last to 16 1-2 
per cent. We might go on with the enumeration and comparison to a great 
extent, but deem it unnecessary. 



Imfiortance of Manufactures, 167 

OF long establishment, that saved them from the fate of the 
others. But supposing that the prohibition of the coasting 
trade had not been enacted — that it had generally fallen in- 
to the hands pf foreigners; but that twenty or thirty of our 
merchants were able to support themselves by that portion 
of it which foreign rivalship left them, would that be ad- 
mitted for a moment to disprove the ruin of the hundreds 
of others that had fallen sacrifices? 

We are persuaded that very few of our citizens attach an 
adequate degree of importance to the industry of the ma- 
nufacturing class of the community, and that it is prodi- 
giously underated. To form a correct estimate of it, re- 
quires to enter into minute calculations, which have rarely 
been made It never could have been supposed, without 
such calculations, that the cotton fabrics, produced by 
100,000 manufacturers in 1815, amounted to more than one 
half of the whole value of the domestic exports, of every 
description, of that year; which is nevertheless the fact, 
as will appear in the course of this address. 

In order to aid you, fellow citizens, in comparing the 
products of manufacluring and agricultural industry, we 
submit a table of the exports of the United States lor the 
year 1815, extracted from the returns of the Secretary of 
the Treasury. We have annexed in the second column, a 
statement of the population of the several states according 
to the census of 1810; and in the third column, an estimate 
of what was the probable population in 1815, assuiviing,^ 
according to Dr. Seybert, an annual increase of 3 per cent, 
or 1 5 per cent, for the whole period. 



168 Exfiorta and fiofiulation of the United States, 

Table of the Domestic Exports and Population of the 
United States, 







Supposed 1 




Domestic Ex- 


Population 


Topulation, 


STATES AND TERRITORIES. 


ports, 1815. 
DoUai's. 


by Census of 
1810. 


1815 advance 
3 per cent 




"^37547 463 




per annum. 


Massachusetts - - - - 


700,745 


805,856 


New Hampshire - - - 


101,203 


214,460 


246,629 


Vermont - - - - - 


161,002 


217,895 


250,579 


Rhode Island - - - - 


337,684 


76.931 


88.470 


Connecticut - - - - 


383,135 


261,942 


301,233 


New York » - - - 


8,230,278 


959,049 


1,102,906 


New Jersey - . - - 


5,i79 


245,562 


282,396 


Pennsylvania « - - - 


3,569,551 


810,091 


931,604 
83,575 


Delaware - - - - - 


10iJ,102 


•72,674 


Maryland - i. « . 


4,086,274 


380,546 


437,627 


Virginia - - - - - 


6,632,579 


974,622 


1,120,816 


Ohio 




230,760 


265,371 


Kentucky 




406,511 


467,487 


North Carolina - - - 


1,012,967 


555,500 


638,825 


Tennessee - - - - 




261,727 


300,986 


South Carolina - - - 


6,574,783 


415,115 


477,382 


Georgia - - - - - 


4,146,057 


252,433 


290,297 


Orleans - - - - 




76,556 


88,039 


Mississippi - - - « 


2,573 


40,352 


46,404 


Louisiana - - - - 


5,055,858 


20,845 


23,972 


Indiana - - - - « 




24,5X!0 


28,198 


Illinois - - - - - 




12,282 


14,125 


Michigan - - - - - 


36,909 


4,76i- 


5,476 


District of Columbia 


1,965,626 


24023 


27,662 




45,974,403 


7,239,903 


8,325,878 



Same table differently arranged. 



STATES. 



Massachusetts 
Connecticut 
New Hampshire 
Vermont 
Rhode Island 
New Jersey 



Total. 



Population Domestic Ex. 
1815. ports. 1815. 



805,8561^3,547,463 



301,233 
246,629 
250,479 
88,470 
282,396 



383,135 
101,203 
161,002 
356,784 
5,279 



1,975, 163[ 4,554,866 



Exports 
per head. 



;4 40 

1.27 

.41 

.64 

4.03 

.02 



2 30 



INcw York 
IPennsylvania - 



l,102,909j 8,230,2781 

931,604 3,56 9,551 

"¥;034,53i|ll,799,829 



7.46 
3 83 



5.95 



Cotton Manufactures, 



169 



STATES. 


Total. 


Exports 
per head. 


Population 
1815. 


Exports 
1815. 


Delaware - - - - - 
Maryland . - - - 
Virginia - - - - - 
North Carolina - - - 
District of Columbia - - - 


83.575 

437,627 

1,120,815 

638,825 

27,626 


% 105,102 
4,086,274 
6,632,579 
1,012,967 
1,965,626 


f^l.25 

9.33 

5.91 

1.58 

71.16 


: 2,308,468 


13,802,548 


5.95 



South Carolina - - 
Georgia ----- 


47,382 
290,297 


6,574,713 
4,146,057 


13.77 
14.28 




767,679 


10,720,870 


13.96 






Ohio 

Kentucky - - - - - 
Tennessee - - - . 
Louisiana - - - - - 


265,371 

467,497 

300,986 

23,927 


;> 6055858 


4.78 


- 


1,057,816 


1,057,858 


4.78 



II appears, on an examination of the preceding tables, 
that the average exports of the whole union, per head, 
were about S5.S2. 

Of New Hampshire, Vermont, Massachusetts, 

Rhode Island, and New Jersey - - g2.30 

Of New York 7 46 

Of Pennsylvania 3.83 

Of Delaware, Maryland, Virginia, District of Co- 
lumbia and North Carolina - - - 5,95 
Of South Carolina, and Georgia - - 13.95 
Of Ohio, Kentucky, Tennessee, and Louisiana 4.78 
Whereas, the surplus of the labour of 100,000 cotton 
manufacturers in that year beyond the price of the raw 
material and the wages, was Sl,200sOe(), or 812 per head. 
This appears by a report submitted to congress by the 
committee of commerce and manufactures, Feb 13, 18 6, 
which states that there were in the preceding year, about 
100,000 persons employed in the United States in the cot- 
ton manufacture, viz. — 10,000 men, 66,000 women and fe- 
male children, and 24,000 boys.* 

Who used - - - bales of cotton 90.000 

Containing - - - - pownds 27,000,000 

* Weekly Register, vol. xi. page 447. 



15^^ Cotton Manufactures. 

Amounting, at 30 cents, to - - 88,100,000 
And producing of cotton fabrics - yards 8 ,000,000 

Averaging 30 cents per yard - - 24,300,000 

Estimating the wages at gl 50 per annum 815,000,000 

Result, 

Gross amount of articles manufactured 1824,300,000 

Cost of cotton 8,100,000 



Net annual gain to the nation on the labour of 
100,000 manufacturers - - - 81^5200,000 

This leaves a gain of one hundred and sixty two dollars 
per head, on the labour employed, let it be observed, on 
articles of low price. 

It is impossible to reflect on this statement, without be- 
ing struck most forcibly with the extent of the advantages 
of this important branch. 

Analysis, 

I. The difference between the price of the raw materials, 
if exported, that is 88,100,000, — and that of the manufac- 
tured articles, — 82 4,300,000, — viz. 8 1 6,200,000, was 
clearly saved to the country. 

II. Th^ amount of the goods manufactured, 824,300,000, 
was more than half — and the amount thus saved to the 
country, ''^\ 6^^200^00^ was more than one-third, of the 
value of the entire exports of the United States for that 
year, which were only 845,97 4,403. 

III. A certain market was provided for the great staple 
of the southern states, the cultivation of which, were the 
manufacture duly protected, might be extended to double 
or treble its present amount. 

IV. The value of lands and the interest of the agricul- 
turists in the vicinity of those establishments, were greatly 
advanced, by the supplies of provisions required for the 
support of the manufacturers. 

The amount of the goods produced by the labour of these 
100,000 manufacturers, viz. 824,300,000, was 

I. Nearly equal to the whole of the domestic exports of 
Delaware, Maryland, Virginia, North Carolina, South Caro- 
lina, Georgia, and the district of Columbia, contauiing 
above 3,000,000 inhabitants; 



Cotton Manufactures. 174 

II. Considerably more than the whole of the domestic 
exports of New Hampshire, Vermont, Massachusetts, Con- 
necticut, Rhode Island, New-York, Pennsylvania, New 
Jersey, Ohio, Kentucky, Tennessee, and Louisiana, con- 
taining above 5,000,000 inhabitants. 

The money retained in the country by the labour of these 
100,000 manufacturers, viz. §16,200,000, was 

I. Nearly equal to the domestic exports of New York, 
Pennsylvania, Ohio, Kentucky, Tennessee, and Louisiana, 
containing above 3,000,000 inhabitants. 

II. About equal to the domestic exports of New Hamp- 
shire, Vermont, Massachusetts, Connecticut, Rhode Island, 
New Jersey, South Carolina and Georgia, containing above 
2,700,000 inhabitants. 

It may on a cursory view appear that we have gone into 
too much detail with these statements. But we trust that 
the magnitude of the errors prevalent on these topics, and 
more particularly the deleterious consequences these er- 
rors have produced, on the prosperity of our country, as well 
as the probability of their continuing to produce a copious 
harvest, will fully justify us. 

Those immense advantages, produced by 10,000 men^ 
66,000 women and female children, and 24,000 boys, if duly 
appreciated by congress, would have led to a system widely 
different from the one pursued in the tariff. Such a source 
of wealth ought to have been cherished with the utmost 
care and attention, which would have been amply repaid by 
the most beneficial results. 

It may, and probably will be demanded, if the advantages 
of this manufacture be so great, why have so many of those 
engaged in it been ruined? This answer is obvious. The in- 
undation of foreign articles, a large portion of which were 
sold at vendue, far below first cost, has so far glutted our 
markets, as greatly to limit the sale of the domestic fabrics, 
and cause ruinous sacrifices on those that are sold. 

Our manufacturers, moreover, in the event of an over- 
stocked domestic market, have no foreign one in which to 
dispose of their superfluous goods. Whereas our markets 
are open for the superfluous goods of all the manufacturers 
in the world!! Never was there such disparity of advantage. 

We do not avail oi^rselves of the obvious advantage we 
inight derive from the circumstance that a portion of 



172 Cotton Manufactures. 

the exports were manufactured and in a highly finished 
state, and were of course at prices far beyond what they 
bore, when they came from the hands of-the agriculturist. 
In some cases, the value was doubled or trebled. Ail this 
advance of price ought to be deducted from the total amount 
as reported by the custom house, in order to carry on the 
comparison fairly, and do the argument justice. But we 
waive this advantage, great as it obviously is, and admit the 
whole as in its rude state. 

The situation of the four western states, claims particular 
attention. Unfortunately there are no data on which to 
form an estimate of their exports individually; such an es- 
timate would be valuable, as it would more thoroughly 
evince the ruinous policy this country has pursued, by its 
effects on Ohio, Kentucky, and Tennessee. But in the de- 
ficiency of correct data, we must rely on the best estimate 
that we can make. 

From the extraordinary fertility of the soil in Louisiana, 
and the great value of its staples, we believe it will not be 
extravagant to suppose that of the sum oi: 5,035,868 dollars 
exported from Ohio, Kentucky, Tennessee and Louisiana 
there was above a million and a half raised in the last state. 
This reduces the surplus of the other three states, devoted 
chiefly to agricialture, and containing above a million of 
people, to three dollars and a half per head! And from the 
immease distance from which a large portion of it is drawn, 
and the consequent heavy expenses, it is not extravagant to 
suppose that it did not produce to the cultivator above 75 
per cent, of this value — probably in many cases not above 
60 per cent. 

We submit, fellow citizens, a fair comparison of the pro- 
ceeds of the labour of 100,000 persons employed in the 
culture of cotton, with that of the same number employed 
in the manufacture of the article, in order more fully to es- 
tablish the importance of the latter. 

Cotton is now about 16 cents per lb. at the manufactories; 
—about 14 ii^ the seaports of the states when^ it is raised, 
and cannot net the planter more than 15, deducting the 
merchant's profits. That cotton will rise beyond this price 
is possible— but not probable. The prices in England, 
which must greatly regulate our markets, are more likely 
to tall than to rise, from the improvement of the culture in 
the East Indies-^the ardour wiih which it is pursued,— and 



Culture and Manufacture of Cotton, i 7S 

the low price of labour there: and in fact it would not bfe 
extraordinary, if, from the abundance of the East India 
supplies, the British market were at no distant day virtu- 
ally closed to our cotton, as it has actually been by order of 
council to our flour. 

Culture of Cotton. 

Ten slaves, five of them capable of working in the fields., 
the other five women and children, will produce of cottcfu 

annually about lbs, 8,500 

At this rate 100,000 would produce lbs, 85,000,000 

Which at 13 cents per lb, amount to gl 1,050,00,0 

Manufacture of Cotton. 

We proceed to state the situation and results of an 
extensive cotton manufactory in the neighbourhood of Bos* 
ton, which is in actual operation. 

It contains men ...... 14 

Women and children . . , . . 286 

300 

And produces with power looms and other machinery, at 

the rate per annum of 
Square yards of cloth . . .. • 1,500,000 

Which at 25 cents per yard is . . . g 3 1 2,500 

Deduct 450,000 lbs. of cotton, at 16 cents, . 72,000 



Annual saving to the nation by the labour of > ©240 50Q 
14 men and 286 women and children, ^ w > 

For the correctness of this statement, fellow citizens, we 
pledge ourselves to the world. We defy contradiction. 

Let us now calculate the result of the labours ot 100,000^ 
men, women, and children, in the same proportions, and at 
the «ame kind of employment: 

As 300: 8240,500 : : 100,000: 880,166,666. 

That is to say, the clear profit of the labour of 100,00t^ 
persons, 5000 men, and 95,000 women and children em- 
ployed in the cotton manufacture, would amount to above 

p 2 



174 Ruinous fioliey, 

80,000,000 of dollars annually, after paying for the raw naa- 
lerial. 

The reason why the result of this calculation so far ex- 
eeeds the proceeds of the labour of the 100,000 manufactu- 
rers, in 1815, as stated in page 168, is, that the machinery 
of the establishment near Boston, has been brought to the 
last degree of perfection— and the power looms which af- 
ford immense facilities to the operations, were very rare 
in 1815. 

It cannot escape the^ttention of even a cursory observer, 
that all our calculations of the results of the cotton naanu- 
facture are predicated on low priced fabrics — and that the 
profits on the high priced are far greater. A large pro- 
portion of those imported from Great Britain are of the 
latter description. This greatly enhances the profits of 
the manufacture. It results from hence, that far less than 
100,000 Manchester cotton manufacturers, principally wo- 
men and children, would be able to pay for the whole of 
the exports of this nation, containing above 9,000,000 of 
people! 

There are probably at this hour from 30 to 40,000 per- 
sons, skilled in this branch, idle in the United States, who 
could produce, according to the preceding calculations, 
cotton fabrics to the amount of 25 to 30,000,000 of dollars 
annually. What a lamentable waste of industry! 

Who can ponder on these facts without astonishment aj 
the impolicy of our system, which, under the auspices of 
Adam Smith, has sacrificed the labour of ten, twenty, thir- 
ty, forty, fifty^ or sixty of our citizens for that of one fo- 
reign manufac turer? If the absurdity were capable of be- 
ing heightened, it would be by the circumstaace, that the 
dearness of labour is so frequently assigned as an argument 
against our fostering manufactures. But surely if our la- 
bour be so d«ar and valuable, we ought not to squander it 
away thus prodigally. 

Can it, therefore, be a subject of wonder, that we are aia 
impoverished nation — that we are drained of our specie— 
that our water power has been, by a bounteous heaven, 
lavished upon us in vain — that so many of our manufactu- 
rers are beggared and bankrupted— that our workmen are 
w.ibting their time m idleness — and that those artists and 
'tnanufi^cturers, who, imfortunately for themselves, have 
been allured to our coasts, by our excellent form of govern- 
ment, have either reiurBcd to Europe, gone to Nova Scotiai 



Imfiortation of^ Cotton into Great Britain, 175 

or Canada, or are obliged to resort to servile employments 
to support existence? 

We now submit to your consideration, fellow citizens, aa 
important table of the imports of cotton into the British do- 
mini#ns, for seventeen years. The first fifteen are taken 
from Dr. Seyberi's Statistics,* and the remaining two from 
the Journal of Trade and Commerce.f 

Table of the Importation of Cotton into Great Britain. 



American 
Brazil 
East India 
Other Sorts 



Na of bags. 



1802. 



107,494 

74,720 

8,535 

90,634 



281,383 



1805. 



1803. 1804. 



106.83i;i04,103il24,279 
76,297; 48,588 1 51,242 
10,296; 2,561 ; 1,983 
45,4741 86,385! 75,116 



238,898 |24i)610|252,620 



1806. 1807. 



124,939 171,267 

51,034' 18,981 

7,787{ n,409 

77,978; 81,010 



261,738^282,667 



1808. 



^^'^^^ 301 107 
50,442 "^"^'^^^ 



12,512; 
67,512 



55,764 
103,511 



168,138 440,382 



1810. 



389,605 

79,382 
02,186 



561,173 



1811. 



1812. 1813« 



1814. 



1315. 1816. 



1817. 1818. 



American 
Brazil 
East India 
Other sorts 



128,192 
118,514 
14,646 
64,789 



95,331! 37,720 

98,7041-137,168 

2,607^ 1,429 

64,563 73,219 



48,853 

150,930 

13,048 

74,800 



103,0371166,077 
91,955 '123,450 
22,357. 30,670 
52,840 i 49,235 



No. of bags. 1326,141 



261,205.249,536 



287,631 



270,189'309yi32 



198,917 205,881 
114 816.161,087 
117,454[247,604 
47,208 50,878 

478^95(665,450 



To the int^elligent cotton planter, this table furnishes 
matter for most serious and sober reflection. It seals the 
death warrant of the hopes which he lately cherished of an 
increasing market and continued high prices in England— 
and, independent of all care or concern for his fellow citi- 
zens, engaged in the cotton manufacture, establishes the 
necessity of securing a steady market for his raw material 
at home. The following analysis deserves peculiar atten- 
tion. 

I. The importation of American cotton has not quite 
doubled in sixteen years. 

II. East India cotton has in the same spaee of time in- 
creased 3000 per cent. 

III. United States cotton has increased but three percent, 
in the last year, 

IV. East India cotton has increased in the same time 110 
fier cent,; and the total increase of importation in that year 
has been 55 per cept. 



^ Page 92^ 



t Feb. 1819, page 111. 



1T6 Ootton Manufuctures^ 

V. Brazil cotton has more than trebled since the year 
1808. 

According to the report of the committee of commerce 
and manufactures, which we have quoted above, the con- 
sumption of cotton in the United States in 1805, was 
only - . - . . bags 1,000 

But in 1815, it rose to - - - 90,000 

Containing ... lbs. 27,000,000 

So rapid was the increase of this manufacture, with no 
other protection than that afforded by the war, in exclud- 
ing foreign rivalship. 

Dr. Seybert states that the greatest amount of cotton ever 
exported from this country was 93,000,000 pounds in 1 808.* 
The whole quantity exported in 1815, to all parts of Eu- 
rope, was about 81,000,000 pounds. f 

It thus appears that the quantity actually consumed by our 
manufacturers in 1815, viz, 27,000,000 lbs. was equal to one- 
third part of all we exported in that year — and what is still 
more extraordinary, it was actually one -third fiart of tht 
iv/iole quantity imported in the same year into England^ the 
most manufacturing country in the world I \ And it will not, 
we trust, be doubted, that a moderate degree of protection 
would have increased the home demand to such an extent 
as to consume the whole. What inexhaustible mines of 
wealth, far beyond those of Golconda or Potosi, have we in 
our power! How lamentable a sacrifice we have made of 
them! and how prosperous and happy should we now be, 
kad we made a proper use of them! 

In order to enable you, fellow citizens, duly to appreciate 
the advantages that would have accrued from the manu- 
facture of the whole quantity of cotton exported in 1806^ 
we submit a sketch of its results. 

Dr. The Industry of the United States, Cr. 

To 90,000,000 pounds of By 270,000,000 yards of 
cotton at 30 cloth at 20 

cents per lb. 27,000,000 cents 5450#0,000 

* Statistics, p. 92. t Idem,p, 152. 

t To these facts particular attention is requested. The imports 
of cotton into Great Britain in 1815 were 270,000 bags; in 1816, 
369,000; in 1817, 377,000; of which considerable quantities were 
exported to the continent of Europe. Whereas the actual con- 
sumption in the United States in 1815, was, as before stated, 90,000 
bags; a strikingproof of the laudable tnterprize and industry of otlr 
citizens^^ 



Cotton Manufactures. 



irr 



To clear profit 
carried to ac- 
count of gene- 
ral prosperity 



27,000,000 
g54,O00,000 



§54,000,000 



We win further suppose that the whole of this cotton 
had been manufactured abroad, and returned to us in a 
manutactured state, and then exhibit the result. 

Dr. The United States, Cr. 

To 270,000,000 yards of By 90,000,000 lbs. 
cloth at 20 cotton at 30 cts. 27,000,000 

cents 54,000,000 By balance car- 

ried to account lo 

national bank- 
ruptcy 27,000,000 



854,000,000 



g5 4,000,000 



Another View of the subject. 

Let us examine the result of 90,000,000 lbs. of cotton, 
manufactured in this country, at the present prices of cot- 
ton— 



Dr. The United States, 

To 9 0,000 000 lbs. 
of cotton at 16 
cents 14,400,000 

To clear profit car- 
ried to account of 
general prosperi- 
ty 39,600,000 



S54,000;000 



Cr. 

By 27,0000,000 
yards of cloth at 
20 cents 54,000,000 



854,000,000 



In order further to evince the importance of the cotton 
manufacture to the wealth and prosperity of nations, we state 



178 Woollen Manufactures. 

its extent in, and gain to Great Britain. The fabrics of that 
staple consumed in, and exported from that country, in 181 2, 
amounted to - - - - sterling I 29,000,000 

The cost of the raw material - - - 6,000,000 



Clear annual gain to the nation - - /. 23,000,000* 
Equal to, above - - - - g 1 00,000,000 

And this ah -important manufacture, for which the United 
States are peculiarly adapted from the possession of, and 
capacity of producing the raw material to a boundless ex- 
tents has been half strangled by our tariff! What agonizing 
reflections this view of the subject forces on the mind! 

Having discussed the subject of the cotton manufacture, 
we proceed to take a view of the woollen, which is equally 
deserving of the most serious consideration. 

By a report of the committee of commerce and 
manulactures, submitted to the house of re- 
presentatives, March, 181 6,t itappearsthatin 
the year preceding there was invested in the 
woollen branch a capital of - - 812,000,000 

The raw material amounted to - 7,000,000 

The value was increased by the ma- 
nufacture - - . . 12,000,000 

Value of goods manufactured annu- 
ally 19,000,000 

Persons constantly employed - - 50,000 

Occasionally - - - . 30,000 

100,000 



jinalysis, 
I. By this manufacture, articles were produced 
in the United States, which would otherwise 
have been importeds to the amount of - g 1 9,000,000 
Deduct price of wool, which, but for this branch, 

would have been exported - - . 7,000,000 



Clear saving to the country ... 12,000,000 

II. Seven millions of dollars expended among the farmers, 
for the wool of about 5,000,000 sheep. 

* Colquhoun on the Power and Resources of Great Britain, p. 3i . 
t Supra, page 13.6. 



Manufactures of the United States. 179 

III. A clear gain to the naiion, by the labour of each per- 
son thus employed, of 120 dollars. » 

The following table cf the value of the national manu- 
factures for the year 1810,, will enable you, fellow citizens, 
to form a correct idea of the importance of the subject. It 
is an estimate deduced by Tench Coxe, Esq. from the mar- 
shals' returns, taken with tlie census of that year. It is 
probable that during the progress of the war, they were 
increased to above g300,000,000. 

Maine 83,741,116 

Massachusetts 21,895,528 

New Hampshire 5,225,045 

Vermont - . . - . • 5,407,280 

Rhode Island 4,106,074 

Connecticut 7,771,928 

New York - ..... 25,370,289 

New Jersey 7,054,594 

Pennsylvania 33,691,111 

Delaware 1,733,744 

Maryland - - - - - - 11,468,794 

Virginia 15,263,473 

Ohio -.--.-- 2,894,290 

Kentucky 6,181,024 

North Carolina -..--- 6,653,152 

Tennessee ---... 3,611,029 

South Carolina 3,623,595 

Georgia • 3,658,481 

Orleans Territory 1,222,357 

Mississippi Territory . - .\ - • 419,073 

Louisiana Territory - - - - 200,000 

Indiana Territory 300,000 

Illinois Territory .... - 120,000 

Michigan Teiriiory 50,000 

Columbia (District) . - - - - 1,100,000 

172,761,977 



The repetition of objections to which we have already 
fully replied, obliges us, fellow citizens, to resume topics 
which we had supposed exhausted 

A I. org these, the most prevalent and popular is the ex- 
tortion said to have been practised by the manufacturers 



180 Charge of Extortio7i» 

during the war. This theme is hacknied from New-Hamp- 
shire \<* Georgia, not merely by men of little minds and 
narrow views, with whom such an objection would be per- 
fectly in character; but men of higher spheres of life, and 
superior order of mind and endowments, allow themselves 
to be led astray by it. 

Even admitting it to have existed to the extent assumed, 
the inference drawn from it, to prevent adequate protection 
to manufactures would not apply at present; as, according 
to the irrefragable maxim of Alexander Hamilton, founded 
on fact and reason, ' the internal comfietition which takes 
filace soon does away every thing like monofioly^ and re- 
duces by degrees the fir ice to the minimum of a reasonable 
firofit on the cafiital emfiloyed,^ 

But we will suppose for a moment that the allegations are 
all just — and that the manufacturers of broad cloth sold, as 
we have already stated, at 13 or 14 dollars per yard, what 
cost them only 8 or 9. With what propriety, we repeat, 
can the importer who at the same period, sold his goods at 
50 or 100 per cent, beyond tiie old prices — the planter who 
raised cotton at 10 or 12 cents, and sold at SO, and would at 
40, 50, or 100 — the merchant who bought flour at l(; dol- 
lars and sold at 20 to 40^ — reproach the manufacturer for 
what they practised themselves? 

We pass over the inconsistency of such conduct, which 
is too palpable and gross to require comment: and we trust 
that the miserable spirit that would prefer the consumption 
of fabrics manufactured in Hindostan, because sold a few 
cents cheaper per yard, (and thus exhaust the wealth of 
the country to support a distant nation, while our fellow 
citizens, who invested millions of money in manufacturing 
establishments, are bankrupted and beggared, and the 
workmen thrown for support on the overseers of the poor) 
will never influence the councils of a great nation. 

But the enormous expenses of those establishments, in 
which investments were made to the amount of 20, 30, 40, 
50 or 60,000 dollars, for buildings and machinery, would 
require and fully justify extraordinary prices in the com- 
Kfiencemeht. — To biing this home to the cotton planters — 
and to enable them to conc'^.ive the force of the argument, 
we will suppose for a moment, tliat during the war they 
had tor the first time to commence their plantations— > and 
to purchase slaves at 4 or 500 dollars each — and planta- 
tions for 5 to 10,000 dollars. Could they, in the incipient 



General Views of Political Economy, 181 

state of their operations, afford to sell their cotton for 1 8 
to 20 cents per ib? Certainly not. This is a case perfectly- 
analogous, and ought to set this miserable objection at rest 
for ever. 



NO. XII. 

Philadelphia^ June 24, 1819. 

We have presented for your consideration, the essence 
of the able and luminous report of Alexander Hamilton, 
then secretary of the treasury, on manufactures. The prin- 
ciples contained in that admirable state paper, are the prin- 
ciples of political economy, that have been practised by 
those statesmen, whom the concurrent testimony of ages, 
have pronounced the most wise; and have constituted the 
policy of every nation, that has advanced in civilization; in 
which the principles of free government have been develop- 
ed; or which has grown in wealth and power. 

Did it comport with the design of these essays, it would 
be no difficult task to establish, by historical references, 
the facts; that the amelioration of society; the evolution of 
those just rights, which are the inheritance of every indi- 
vidual; and the weii^ht and influence of the people in their 
government, had their origin in the establishment of manu- 
facturing industry. With its progression, have they pro- 
gressed; and by the diffusion of wealth through every class 
of the community, which is its necessary concomitant, have 
been diffused civilization and knowledge. The principles 
by which these important results have been effected, we 
shall shortly elucidate. But other considerations first in- 
vite attention. 

The arguments, by which Mr. Hamilton has sustained 
the principles he advocated, are lucid and conclusive We 
believe them to be irrefutable. At least, we have not as 
yet met with any opposing writers, who have shaken one 
of the positions he advanced. Those diversified combina- 
tions, which grow out of, and affect all human transactions, 
did not escape his penetration. They are too commonly 
ovejjooked by theorists, who intent on general principles, 
disregard the minuter circumstances, that arise out of their 



182 General Views of Political Economy. 

very action, and frequently render them impracticable in 
operation, however just they may appear in themselves. 

In no science, are the general maxims of mere theo- 
rists more delusive, and more to be distrusted, than in 
political economy. This branch of know^ledge is yet in its 
infancy. It is composed of relations so commingled and 
commixed together, that like a skein of tangled threid, 
they require to be traced out with great patience, perse- 
verance, and close attention. Its principles are not yet 
established. Those which have been considered as the 
most fixed, have been overthrown; those which have been 
taught as self-evident, are questioned; and the whole are 
the subject of ardent discussion. In this state of the sci- 
ence, general maxims can serve no other purpose, than to 
give flippancy on an abstruse subject, and to overleap diffi- 
culties, that cannot be removed. 

While the elements of political economy are thus unde- 
termined, we are called upon to set at naught the harmoni- 
sing examples of the most prosperous states; the accumu- 
lated experience of centuries; and to confide the charac- 
ter, the resources, the power of this nation; the wealth and 
happiness of this people; the safety perhaps of the govern- 
ment itself, to the operation of abstract principles, which 
have not yet been confirmed by practice, nor even settled 
by authority. 

In human affairs, abstract principles, though they may 
captivate the fancy \Sy their simplicity, are often defeated 
by those subordinate accidents, which they must necessa- 
rily exclude. The principles of ' Political Justice,' of the 
English, and the ' perfectibility of human nature' of the 
French Philosophers, as well as unlimited freedom of mo- 
ral action, in the abstract, may be true. But overlooking 
the very constitution of human nature, the discordancy of 
its sentiments, the compiexedness of its affinities, the va- 
riety of its affections, the perverseness of the human heart, 
and obliquity of human intellect, they can only be regarded 
as the visions of benevolent enthusiasts 

The abstract principles of political economy, are of si- 
milar character. Resulting from general reasoning, which 
seldom descends to minute particulars, they bear all the 
evidences of correct deductions, until brought into practice. 
Their inefficiency is then disclosed, and their partial nature 
made manifest The involutions and compound nature of 
human interest, we are convinced, set distinctive limitations 



Remarks on HamU(on*s Refiort, 183 

at defiance. They often open suddenly into new channels 
that have not been traced, or flow through others, so ob- 
scure, that they have escaped our notice. Our generalities 
are defeated by unanticipated combinations, which give 
results never calculated; and re-actions are produced, that 
work effects never suspected. 

In a science thus uncertain, and in things thus compli- 
cated and indistinct, it is the part of prudence to tread the 
paths of sober experience; to trust those guides, whose 
long practice has imparted substantial knowledge, and whose 
knowledge is verified by their success. To reject the long 
acquired wisdom of ages, and the well-earned experience 
of mankind, from confidence in superior wisdom, may 
justly subject us to the imputation of self-sufficiency, and 
hazard the dearest interests of our country. 

It is against such visionary projects, that we have raised 
our hands; it is to warn you from the closet speculations of 
theorists, to invite you to common sense practice, founded 
on the nature of things, that we have intruded with the 
best intentions on your notice. We have presented to you 
in succession, the systems of various powers in Europe, 
for the advancement of their welfare; and have shown 
some errors of policy, bearing a strong similarity to prin- 
ciples generally entertained in the United btates, which 
proved fatal to those by whom they were adopted^ We 
have, finally, presented you with a system, that has been 
proposed by one of our most enlightened statesmen, as 
best adapted to promote the wealth and power, by exciting 
and fostering the industry of this country, in the circum- 
stances of a general and continued peace in Europe, This 
system was prepared with an experience of the operation 
of the peace policy of Europe on our affairs, subsequent 
to the peace of 1783, and after mature reflection on the 
commercial relations between this country and foreign 
powers. Its principles, founded on well substantiated 
facts, are drawn from the examples of the most prosperous 
and most powerful nations; and its materials derived from 
the abundant sources of European commercial legislation. 
These are circumstances which entitle it to great weight, 
and to be received with the most marked and serious at- 
tention. 

Let it not be presumed, that we are influenced by any 
feelings of political partiality, in favour of Mr. Hamiltoti. 
Most of those, who thus tender the tribute of their applause 



184 Remarks on Hamilton's Refiort, 

to his merits as a statesman, and thus highly appreciate 
this particular fruit of his labours, were, and continue to be, 
the decided opponents of his political principles. It is bi- 
gotry alone, that denies or would obscure merit in those, be- 
yond the pale of its own belief, in church or state. To this 
feeling, we wish to have no claim, and while we confess a 
contrariety of sentiment on some essential points, we would 
jiot withhold our acknowledgment of the brilliancy of the 
genius, the extent and solid nature of the acquirements, 
and the strength of intellect, that distinguished Alexander 
Hamilton. 

In the present situation of the country, when it cannot 
be concealed, that its progress has received a sudden 
check, and society labours under the shock of a rapid re- 
coil, the discussions of political parties sink into minor im- 
portance, in comparison with the great principles of the 
prosperity and happiness of the people and of the nation. 
These are the principles that should rise paramount in the 
view, occupy the thoughts, and animate the feelings of every 
citizen of the great American republic. Divesting your- 
selves, therefore, of party feelings, prejudices and partiali- 
ties; casting aside, as derogatory to the character of Ame- 
rican citizens, the petty jealousies of sectional interests, 
take into candid consideration that system of policy, which, 
in the early establishment of our government, was deemed 
best to comport with our interests as an independent peo- 
ple. If its principles should appear to you just, and the 
reasoning by which it is sustained, consonant to truth; if 
you should be satisfied, it is the best adapted to our pre- 
sent and probable future circumstances, you will not hesi- 
tate to trust to it, for the advancement of individual and 
national prosperity. 

An inquiry naturally arises into the causes, which led 
the government, after having matured this system, and 
contemplated its adoption, to lay it aside. They are de- 
veloped in our commercial history, and will be found to 
strengthen the principles and views on which it was erected, 
and for which we contend. 

The peace concluded in 1783, continued undisturbed; 
Europe offered but partial markets to our productions, 
while it closed its commerce to our marine. The annual 
value of our foreign exports, was less in amount than the 
annual value of our consumption of foreign commodities, 
and we possessed no collateral sources of wealth to com- 



Embarrassment of the Colonies. 185 

pcnsate the deficiency. The government had assumed a 
lar^rc debt, which subjected it to a heavy annual interest; 
other ^-xpenses were accumulating, the increase of which 
might be confidently anticipated; and the prospects of re- 
venue from foreign commerce, or an impoverished people, 
were but gloomy. In these circumstances, the attention of 
our statesmen must have been directed to internal resour- 
ces Y^t from this quarter could be derived little to in- 
spire their hopes. Commerce brouglit no money into the 
eountiy^ circulation was limited and slow; the industry 
or labour power of the country was but partially exerted; 
and consequently much wealth lost, that might have been 
created. Without a circulating medium, and full employ- 
ment for industry, revenue must have been oppressive to 
the people, t)f difficult collection to the government, and 
uncertain in its proceeds. 

The difficulties of the colonial governments, and the evils 
endured by the colonists, were then fresh in remembrance, 
and their causes were well understood. The commerce, to 
which they had been limited, was that which at this time is 
recommended to our adoption. Confined almost exclu- 
sively to the tillage of the soil, they exchanged their raw 
productions for the manufactured articles of the mother 
country. This kind of barter, or " mutual exchange,*' to 
which the colonies were forced by the colonial system of 
England, kept them poor to favour industry at home. This 
commerce, to which the jealous policy of Great Britain li- 
mited her colonial possessions in America, it was acknow- 
ledged both in and out of parliament, in the colonies and in 
England, and cannot now be denied, was intended solely 
to render them subservient to her interests, to which theirs 
were unhesitatingly sacrificed. Their progress on in wealth 
anci power, was looked upon with a distrustful eye. In or- 
der to its retardation, lo keep them poor and dependent, 
they were forbidden to manufacture, and compelled to sup- 
ply their wants from England. Even the earl of Chatham, 
who is consiiiered to have been the friend of America, as 
he was the advDcate of her rights, was still so much an 
Englishman in this respect, he was unwilling that a single 
hob-nail should be manufactured in America. 

The cultivation of the soil to its greatest extent, excited 
no apprehensions that it would enable the colonies to be- 
coiiic independent. England well knew, that in the mutual 

xcliange of raw products for manufactured goods, all the 



i 86 Embarrassment of the Colonies. 

advantage was on her side, the loss on that of the colonies. 
She, therefore, restricted them to the cultivation of the 
soil, except permitting a few handicrafts of first necessity, 
and the fisheries to the New England colonies, which 
raised no production she required. 

This system kept the colonies in a wretched condition* 
They were totally destitute of the precious metals, either to 
constitute or regulate a currency. Every hard dollar that 
found its way into them, was immediately exported to Eng- 
land in payment of debts. " Those that are acquainted with 
America, know as I do," said capt. Luttrel in a debate in 
parliament, " that from Rhode-Island, northwards, they 
have no money; that their trade is generally carried on by 
barter, from the most opulent merchant to the most neces- 
sitous husbandman. Sir, before your fleet and armies visited 
their coasts, you might almost as soon have raised the dead, 
as one hundred pounds in specie from any individual, in 
those provinces.''* 

In order to procure some kind of currency to make those 
mutual exchanges, which the wants of civilized life render 
indispensable, and which cannot with convenience be effect- 
ed by barter, the colonists were forced into various expedi- 
ents. They altered the standard of money; they issued paper 
money of different kinds; they constituted it a legal tender. 
But all was ineffectual. While they had to hire workmen 
in England to perform their labour, they could not retain 
their gold and silver, which was sent to pay wages abroad. 
Altering the standard did not affect the value of gold and 
silver, which could not be restrained by an arbitrary limi- 
tation: and their paper money having no guarantee for its 
safety, constantly depreciated. 

Such, it was known to our government, were the results 
that had been produced by a commerce, engaged in the 
exchange of the productions of the soil, for manufactured 
goods. They could not, therefore, anticipate, that a similar 
commerce would have other effects; and consequently, 
that by such a commerce, a metallic currency could be 
given to the people, or even a metallic basis acquired, for an 
adequate paper currency. There was then no other course 
left them to pursue, but to adopt the manufacturing policy 
of Europe. By supplying a portion of those wants with our 
own industry, for which the colonies had been compel- 

* Parliamentary Register. 



Flourishing State of Commerce. 187 

led by the parent country to hire and pay for labour in Eng- 
land, we would diminish the amount of our imports, with- 
out diminishing the amount of our exports. Because ling- 
land took from us no more of our productions, than she 
really wanted, and those she wo fid take under any circum- 
stances, while the other nations to which we traded, were 
never influenced by other views, than the mere supply of 
their wants. Thus the balance of our trade with the West 
Indies, which had always been paid in specie, but immedi- 
ately remitted to England, would have been retained in cir- 
culation; while a portion of the balance with France and 
the Mediterranean, would also have found its way back to 
this country, instead of always being transferred to England. 
In this manner, and in this manner only, in a state of gene- 
ral peace in Europe, could a circulating medium have been 
procured, that could be kept pure, free from depreciation, 
and fluctuations. 

But the rapid occurrence of events wholly unexpected, 
unfolded new prospects, and enabled the United States to 
acquire with ease and rapidity, the wealth and power ne- 
cessary to give stability to their recently formed institutions. 
In the midst of the agitations of the French revolution, the 
crops failed in France and other parts of Europe, At once 
a market was opened to our agricultural production, stimu- 
lated to its greatest energy. The labour power of the coun- 
try, was instantly employed to the full extent of its capaci- 
ty. The war that soon ensued, and involved almost every 
power in Europe, constituted us at once the carriers of an 
immense commerce. Our sails swelled on every ocean, 
and our flag streamed on every shore. Every dollar of capi- 
tal we possessed or could borrow, and every hand in the 
nation, before idle, found employment. A road was thus 
open to a rapid acquirement of wealth, and it was a natu- 
ral policy to pursue it. The capital and industry of the 
country, before stagnant and depressed, rushed into the 
new formed channel Manufactures under these circum- 
stances were neglected and the project was dropped. All 
the benefits that were expected to arise from them, were to 
be obtained with certainly and expedition, by prosecuting 
our newly disclosed and widely extended commerce. 
Wealth rolled in apace, and the metallic capital alone in 
the space of ten or twelve years, was increased to twenty or 
twenty-five millions of dollars. But the whole ofthispros- 
jperity, depended on contingencies. A general peace in 



1 88 JWw State of Affairs. 

Europe, would bring it to a close. As it was, we could not 
enjoy it undisturbed. The celerity of our progress awaken- 
ed the jealousy of a rival. It was sought to destroy, by new 
principles of national law, the advantages we derived from 
our neutral character. The difficulties that were thus gene- 
rated, terminated finally in war, which arose, let it be re- 
marked, not from a spirit of manufactures, but from a spi- 
rit of commerce. The expenses and sacrifices necessary 
to its prosecution, were in fact, a tax upon the country, in 
favour of commerce; yet it was cheerfully borne, by the 
agricultural and manufacturing interests. 

Out of this contest, the nation came with an accession 
of character; whilst the rapidity of circulation, the fulji 
employment of capital, and its retention in the country, 
caused individuals to feel but little comparative distress, 
notwithstanding its burthens. The attack directed against 
the physical strength of the country, only served to deve- 
lop its power and resources. The war now waging against 
its moral strength, has paralised its energies, and laid it 
prostrate in the dust. It is no exaggeration to assert, that 
the two last years of peace, have produced more commer- 
cial embarrassment and distress, a greater destruction of 
capital, and increase of individual misery, than was caused 
by the whole war. 

This apparent anomaly deserves to be examined. We 
believe its solution will be attained in the following conside- 
rations. The general pacification of Europe, had preced- 
ed the treaty of Ghent, and most of the powers of the 
eastern hemisphere, had re-assumed their usual peace po- 
licy. The object of this policy is to foster their own ma- 
rine, agriculture and manufactures, to the exclusion of 
tliose of other nations. We consequently had lost the 
commercial relations, that had existed in a state of Euro- 
pean warfare. In fact, we reverted back to our old com- 
mercial position, prior to the French revolution, or when 
colonies. Had this circumstance been understood, it would 
have been foreseen, that the same effects would have grown 
out of the same causes now as formerly. The principles, 
views, and reasonings, adapted to the then situation of the 
country, it would have been perceived, were again applica- 
ble. But the habits and modes of thinking, which had been 
formed during twenty years of a lucrative commerce; the 
complete mutations which had taken place ii) the com- 
mercial world, during that time, leaving few individuals 



JVenu State of Jjffairs. 139 - 

possessed of a practical knowledge of the effects of a gene- 
ral peace, on the interests of the country, occasioned the 
revolution our commerce had undergone to be overlooked 
or disregarded. 

Most of those engaged in commerce, who also, it will 
be recollected, preside over the monied institutions which 
regulate our currency, had little other experience of com- 
merce, than such as existed during the wars of the French 
revolution. They naturally supposed, that it would conti- 
nue to work the same effects, as during that period, except 
in smaller amount. The failure of two successive crops in 
Europe, in 1815 and 1816, which stayed for a time the ope- 
ration of the new state of affairs, served to continue this de- 
lusion. The time, however, is not remote, when we shall 
be awakened to the true situation of our commercial rela- 
tions with Europe, and its consequences. The evils, which 
now press on us, many vainly flatter themselves, are mere 
temporary effects, similar to those which have before ari- 
sen from slight derangements of commerce. We are firmly 
persuaded, they are of a very different character, and of a 
more formidable nature. We have no doubt, that they are 
the same, as the evils under which this country suffered 
when colonies, and during the peace subsequent to the re- 
volution. The sooner we satisfy ourselves that such is the 
case, the earlier we shall extricate ourselves from the em- 
barrassments, that must grow out of this position, in which 
we are placed. We propose to enter into the examination 
of this subject in a future number, and trust we shall exhi- 
bit by a comparison of the commerce of the colonies, and 
the effects it produced on them, extracted from authentic 
documents, with the present commerce of this country, 
and the effects now begun to be felt, that they are of similar 
character. We fear, that from this view of the subject, 
though little flattering to our pride, it will be apparent, that 
after having expended the best blood of the nation, and mil- 
lions of treasure to shake off the yoke of colonization, we 
have voluntarily adopted the colonial policy of England, 
and placed ourselves with respect to her, and in truth to 
most of the world, in the situation of colonies. From this 
state of humiliating and injurious dependency, the United 
States are bound to vindicate the sovereignty of a free peo- 
ple. For in vain will they make pretensions to a perfect 
independence, while they incur through the medium of 
their wants, all the consequences of subjection. 



19d Machiavelian Policy. 

NO. XIIL 

Philadelphia^ July 5, 1819. 

VARIOUS causes concur to produce the present un- 
happy state of affairs. It is our belief, however, that the 
main root, whence branch all the evils we suffer, is the ne- 
glect of furnishing full employment, to the productive la- 
bour of the country. 

National wealth does not consist in land, people, or the 
precious metals, but in the possession of products or va- 
lues, created by labour. 

A country with an extended territory, and a scattered 
population, must be poor and feeble. Such is Spain at this 
moment, and such was this country when in the state of 
colonies. 

There is a paper in the Spectator, No. 200, that contains 
some excellent reflections on this subject, which, as they 
cannot be better expressed, we shall extract in full. 

" If the same omnipotent Power, which made the world, 
should at this time raise out of the ocean and join to Great 
Britain, an equal extent of land, with equal buildings, corn, 
cattle, and other conveniences and necessaries of life, but 
no men, women nor children, I should hardly believe this 
would add either to the riches of the people, or revenue of 
the prince.'' And again — 

" That paradox, therefore, in old Hesiod, ^aiov H^i^a 
TTstvlcg, or half is more than the whole, is very applicable to 
the present case; since nothing is more true in political 
arithmetic, than that the same people with half a country, 
is more valuable than with the whole. I began to think 
there was nothing absurd in Sir W. Petty, when he fancied 
if all the Highlands of Scotland and the whole kingdom of 
Ireland, were sunk in the ocean, so that the people were 
all saved and brought into the lowlands of Great Britain; 
nay, though they were to be reimbursed the value of their 
estates by the body of the people, yet both the sovereign 
and the subjects in general, would be enriched by the very 
loss." 

The same sentiment is contained, and placed in a strik- 
ing point of view with relation to this country, in a peti- 
tion to parliament, in the year 1767 General Phineas Ly- 
man, it appears, contemplated the establishment of a set- 



Machiavelian Policy, 19 f 

tlement on the Ohio, in the present state of Illinois; and 
for this purpose applied to parliament for a tract of iund. 
He enforced the propriety ot the measure, by the argjument, 
that there could be little danger of the colonies beconung 
independent, if confined to ai^ricultural pursuits, and the in- 
habitants were diffused over the country. The position is 
perfectly correct, and is a very suitable and forcible reply 
to those who are incessantly advising the same policy to 
these free and independent states, instead of promoting ma- 
nufacturing industry on the seaboard, and the already 
thickly settled parts of the country. This is purely an En- 
glish doctrine, and (»ne which the English government 
unquestionably warmly approves. 

"A period," the petition we allude to observes, "will 
doubtless come, when North America will no longer ac- 
knowledge a dependence on any part ot Europe But that 
period seems to be so remote, as not to be at present an 
object of rational policy or human prevention [and] it will 
be made still more remote, by opening new scenes of agri- 
culture, and widening the space, which the colonies must 
first completely occupy."* 

While it is thus demonstrated, that teiTitory thinly peo- 
pled confers neither riches nor power, we have examples 
in Egypt, modern Greece, and other provinces of the Turk- 
ish empire, and in Persia, that people deficient in industry, 
contribute as little to national wealth or strength; while 
Spain and Portugal are familiar instances, that they are 
not necessarily concomitant with the possession of the pre- 
cious metals. 

When we reflect on the distribution of labour in society, 
which is necessary to give value to production, we shall be 
more sensible of the truth and operation of the principles 
laid down. 

It has been judged from experience, and admitted by the 
best authorities, that the labour of twenty-five persons, will 
procure ail the common necessaries of life, as food, drink, 
apparel, housing, furniture, &c. for one hundred persons. 
This supposition takts the above articles as coarse, though 
plentiful and good One half, it is supposed, from being 
too old, or too young, sick or infirm, will produce nothing. 
There will then remain about twenty-five individuals of 
every hundred, capable of working, who are necessarily idle 

* Macpherson's Annals of Commerce, 1767. 



192 Views of the French Revolution. 

©r non-productive. Now, on the quantity and quality of the 
employment, with which these twenty-five individuals are 
occupied, depend the wealth, power, intelligence, and de- 
gree of civilization of a nation. 

The objects which can alone occupy this class, which, 
for the sake of distinction, we shall call non-necessary pro- 
ducers, as there is sufficient of sustenance and rainment, Sic. 
for necessary wants, produced without them, must be, in 
part, to give to those products greater refinement, and con- 
sequent value: that is, to give to food a higher relish and 
mo»e diversity; and to apparel, furniture, &c. more of or- 
nament and beauty. These operations are the chief con- 
stituents of manufactunng industry, and absorb a consider- 
able part of the labour, which would otherwise be idle. The 
cultivation of letters, of the fine arts, of the physical and 
abstract sciences, the offices of state, and ils protection in 
the army or navy, in civilized society, give occupation to 
the remainder. 

When that portion, which is employed in creatingTnate- 
rial products or values, finds full occupation, and is predo- 
minant, then national wealth is on the increase; circula- 
tion is kept full, brisk and steady; contentment and ease, 
comfort and happiness, are in the power of each individual 
to obtain; the government is invigorated, and its finances in 
a flourishing state. This is the situation of a prosperous 
people, and to attain and preserve it, should be the constant 
aim of an enlightened government 

The reverse of this state of productive industry, brings 
on a lamentable change in the affairs of a nation. In propor- 
tion as the employment of this class diminishes, national 
production or wealth declines; circulation becomes dull, 
languid and stagnant; embarrassments and difficulties sur- 
round traders; poverty and misery assail labourers; being 
idle, they become vicious; and, oppressed by pauperism, 
they become criminal. The materials for riots, and civil 
commotions; the ready instruments of designing dema- 
gogues, are formed and accumulated, to the hazard of all 
good citizens, and the safety of civil government. 

It is not improbable, that it was this state of things, which 
was one of the principal causes of the violences of the T'rench 
re\olution. The derangement of the finances; the immense 
and unequal exactions of the government, which fell chiefly 
on the industrious poor; the vacillation of its measures, 
which overthrew all confidence; and tKe operation of tho 



Machiavelian Policy. 19 o 

impolitic treaty of commerce with England of 1786, all 
tended to ruin the productive industry of France. Large 
fragments of its population were thus disjointed from their 
usual situation, and floated loose and unemployed, endanger- 
ing the existence of organized society, with the first agita- 
tions that should arise. 

The commencement of the revolution seems a demon- 
stration of the fact A starving multitude surrounded the 
Hotel de Ville, vociferating for bread; and, whenever the 
king appeared in public, his ears were stunned with the 
same incessant clamour from the crowd, that thronged 
around his coach. 

The same principle, explains satisfactorily the cause of 
the extraordinary military energy of France, at that period. 
Her commerce ruined; her manufactures languid; her 
trades sinking from diminished consumption; her agricul- 
ture oppressed and declining; and the total destruction of 
her finances, threw an immense mass of physical and labour 
power out of employment. The army ofi'ered the only mode 
of occupation, by which it could be absorbed. Hence, more 
than a moiety of the non necessary producers, whose labour 
had been appropriated on a thousand different objects, was 
suddenly devoted to arms. In the armies of the republic 
were found every rank and grade of society, and every 
variety of trade and profession. 

Europe, which had confederated against that devoted 
country, and anticipated an easy conquest, was surprized, 
alarmed, and confounded, at the spectacle presented by this 
nation, which had seemed prostrated with calamity, send- 
ing forth at one time "eleven distinct armies"* to the field, 
and her extended frontier bristling with bayonets. 

This principle was so well understood in England, before 
the establishment of manufacturing industry secured per- 
manent employment, that it became a maxim with her kings 
to engage in wars, whenever this portion of her population 
accumulating, became idle, restless, and discontented. 

"It was the dying injunction of the laie king, (Henry IV.) 
to his son, not to allow the English to remain long in peace, 
which was apt to breed intestine commotions; but to em- 
ploy them in foreign expeditions, by which the prince 
might acquire honour; the nobility, by sharing his dangers, 

* Stevens's Wars of the French Revolution, vol. i. p. 266. 
u 



194 Crusades, 

might attach themselves to his person; and all the restless 
spirits find occupation for their inquietude."* 

By this means employment was found for her superabun- 
dant labour, which had become oppressive and troublesome 
to the government, because it could not find any other oc- 
cupation. 

On the disposition which is made by the government, of 
this class of non-necessary producers, depends the charac- 
ter of a nation. If the greater portion be occupied in agri- 
cultural and manufacturing industry, the nation will be 
wealthy and prosperous, but not enlightened. This is the 
case with China and Hindostan. 

If engaged in arts, letters, and sciences, it will be distin- 
guished for its writers, poets, philosophers, historians, ora- 
tors, statesmen, sculptors, and painters. Greece in its ma- 
turity, Rome in the Augustan age, and Italy at the time of 
the revival of letters, illustrate our doctrine. 

If arms be made their trade, the people become warlike, 
make extensive conquests, and are renowned for heroes, 
commanders, and warriors. This was the character of 
Greece in its early history, of Macedon, and of Rome. It 
is also the condition of most semibarbarous states; like the 
Scythian tribes, which destroyed th*^ western empire; and 
the Arabs, who carried the crescent over more than half the 
world, and have thundered at the gates of most of the capi- 
tals of Europe. In the vigour of its feudal institutions, 
Europe presented the same aspect. Arms and a rude 
agriculture constituted the chief employment of its inhabi- 
tants, who, poor and oppressed, were the dependant vassals 
of their lords. 

Unoccupied by trades or manufactures, they were ever 
ready to follow their chieftains to the field, reckless of the 
cause which summoned them to the work of destruction. 
Under the banners of the cross, were arrayed such multi- 
tudes, that Europe, remarks Anna Comnena, loosened from 
its foundations, and impelled by its moving principle, 
seemed in one united body to precipitate itself on Asia.f 
The plains of Palestine and the borders of the Nile, for 
near two centuries, were deluged with the blood of millions 
of human beings, vainly shed in the fruitless battles of the 
crusades. 

' * Hume's History of England, vol. 2. chap. xix. p. 59. 
t Alexias, lib. 10. 



Queen Elizabeth's Policy. 195 

When the exertions of a population of this character, 
are not directed on some one object, and combined by the 
control of an efficient government, or by some ruling motive 
of religion or interest, society is in complete disorganiza- 
tion. Civil wars, the contests of petty chieftains, plunder- 
ing and robbing by arnied bands, ranging over the country, 
are then the predominant features. The dominions of the 
Grand Seignior, Africa and many Asiatic states, are in- 
stances of this constitution of things; and there are stmng 
indications of its commencement in Spain. 

This was the condition of feudal Europe. The crown pos- 
sessed little constraint over its great feudatories; each of 
which avenged his own wrong, with his sword; and most of 
them supported their petty dignity, and their retainers, 
by predatory incursions on the domains of their neighbours. 

From the disorders incident to, and the degradation con- 
sequent on feudalism, man was rescued by the establishment 
of manufactures. They drew him into towns and villages; 
^nd association sharpening his intellectual faculties, he be- 
gan to understand his rights. By his labour, wealth was 
created; and with his wealth, and by his combination, he 
acquired power to enforce his rights, or the means to pur- 
chase their enjoyment. 

Tracing the causes, whence have proceeded the abroga- 
tion of feudal institutions, and the emancipation of society 
from the debasing and depraving influence of feudal obli- 
gations, it will be seen, that they have disappeared, like 
darkness yielding to the day-dawn, before the genial and 
invigorating influence of manufacturing industry. 

The people of Italy, acquiring wealth and power, arts, 
letters and science, by their industry, first cast aside the 
shackles of feudal bondage. Flanders and the Netherlands, 
treading in their steps, next succeeded in^the list of free 
states. As manufactures progressed in England, the peo- 
ple gradually rose into consequence and independence. Yet, 
from the many obstructions they met with, by the impolicy 
of the different kings, vassalage was not completely annul- 
led until 1574. In that year, Elizabeth, in order to raise mo- 
ney, directed a charter to her lord treasurer Burleigh, and 
Sir \yilliam Mildmay, chancellor of the exchequer, " to 
inquire into the lands, tenements, and other goods of all 
her bond-men and bond-women in the counties of Cornwall, 
Devon, Somerset, and Gloucester, viz: such as were by 
blood, (e. e. birth) in a slavish condition, by being born in 



196 Continental System. 

^ny of her manors; and to compound with all or any such 
bond-men or bond -women in these four counties, for their 
manumission or freedom; and for enjoying their said lands, 
tenements and goods as freemen."* Thus terminated feu- 
dalism in England, from the commonalty being enabled by 
the wealth acquired by manufacturing industry, to purchase 
their emancipation. 

In France, the progress of commerce and manufactures 
was slower than in England, and a consequent slower 
progress is observable in escaping from feudal oppression. 
Those, who had engaged in commerce and manufactures, 
were, however, the first who became exempt; and the 
agriculturist at the period of the revolution, whic^ brought 
it to a close, alone was subject to its hardships. 

The peasantry of nearly all the Germanic states, of 
Hungary, and of Russia, are at this time trammelled with its 
fetters. But the period of their liberation rapidly hastens 
on. The immense sums, disbursed by the contending powers 
in the late contests, have diffused much property among the 
commonalty, and excited their industry. The continental 
system of Bonaparte,excited aspirit of manufacturing, which 
is still maintained. The sovereigns in the last grand confe- 
deracy, against Napoleon, could not rely as formerly, solely 
on mercenary troops, but were thrown on the people for sup- 
port. A military spirit, and the sentiments it gives birth to^ 
have thus been infused amongst their subjects, who have 
learnt the dangerous secret of their power and its extent. 
The consequences have been, that Bavaria and Baden, now 
enjoy the best constituted and freest governments in Europe, 
while almost all the people of the states of Germany, are 
perseveringly and anxiously demanding from their rulers, 
an acknowledgment and guarantee of their rights in writ- 
ten constitutions, and a participation, by their representa- 
tives, in the government. 

The more close and attentive the examination of this in- 
teresting subject, the more conclusively will be established 
the position, that the modern principles and practice of free 
governments; the amelioration and refinement of society; 
the advancement of civilization; and the cultivation ot the 
higher intellectual pursuits; have grown out of the diffusion 
and division of productive labour, and the multiplication of 
the objects of its exercise. 

♦ Anderson's Origin of ComnjercCc 



Mxtent of Machine Labour , 197 

When the labour or producing power of a nation, is not 
too n.uch concentrated, in any one or two particular occu- 
pations, but is diffused in due and regular proportion, 
amongst those professions that constitute civilization, such 
a nation is, then, in its most prosperous, happy, powerful, 
and intelligent condition. It will be equally famed for its 
wealth, its power, its laws, its arms, its letters, its sciences, 
and its arts. This constitutes the most miproved state of 
society, which it is the duty of government to establish and 
cherish In different degrees, this is the case with dif- 
ferent nations of Europe. There are various causes, Into 
the detail of which, we have not leisure, and which would 
lead us too far from our object to enter, that cast over each 
of them, different complexions and tints, but which do not, 
however, destroy their similitude. 

We shall barely confine ourselves to remark, that in 
England, her political policy, and her labour saving ma- 
chinery, produce modifications of the general result on her 
population, which at first view, seem t& militate against 
our proposition. But a little inspectioai will dissipate the 
incongruity. 

The population of Great Britain is estimated at 17,000, 
000 Let us allow three-fourths to be productive of material 
values, which will make 12,750 000, as the physical labour 
population. But according to Mr. Owen of Lanark, the 
machinery of Great Britain creates a production equivalent 
to the labour of 180,000,000, individuals. The physical po- 
pulation, therefore, of Great Britain, is, to what may be 
calird her moral population, as 1 is to 14. Now, it is 
chiefly the labour population, and that generally which is 
devoted to the coarsest and lowest labour, that is subject to 
pauperism. They are made paupers, by whatever inter- 
feres with their industry, or competes v*.ith their labour. 
But as a moral or machinery labour power, is sinnlar to, 
and equivalent in its production, to a physical labour power, 
the physical labour power ot Great Britain, that is rendered 
paupers, ought in strictness, to be compared not to its | hy- 
sical productive power alone, but to its whole productive 
power; that is, not to twelve or seventeen millions, but to 
192 or 197,000.000 Let us suppose Mr Owen's calcula- 
tion to he erroneous, and let us strike off eighty millions, 
and take ihe productive power of machinery in EngLsnd as 
equal to 100,000,000 of people, still, viewing it in the light 

R 2 



19 8 Prosfierity of United States. 

we have presented, the discrepancy, that is often pointed 
our, disappears. 

The aristocratic provisions of the English constitution, 
and the operation of the vast funding system now establish- 
ed, also disturb that equable and regular diffusion of labour, 
proauciion, and the burthens for the support of govern- 
ment throughout the community, which is essential to the 
highest btate of political prosperity and happiness. 

Its order of nobility is supported in the magnificence and 
splendour of an illustrious rank by inordinate salaries, attach- 
ed to petty and mostly useless offices of state, and by enor- 
mous pensions and extravagant sinecures. These are taxes, 
levied on the mdustrious and productive members of so- 
ciety, to pamper the luxury, and glut the pride of the idle 
and non-productive. 

The laws of primogenitureship and of entailments, ab- 
stract and withhold from the general circulation, a large 
ponion of the landed property, in favour of this privileged 
rank, to the manifest detriment and oppression of the in- 
dustrious class; and as Lord Coke observes, <^ what con- 
tentions and mischiefs have crept into the quiet of the law, 
by these fettered inheritances, daily experience teacheth." 

The limits of these essays, forbid us to develop through 
all their ramifications, the operation of circumstances pe- 
culiar to European society, and of the political policy of its 
governments which counteract and frequently destroy the 
beneficial results of its principles of economical policy. The 
two are not necessarily connected. The one can be em- 
braced with ease, without adopting the other. We have 
confined ourselves exclusively to the consideration of the 
political economy of England and other European powers, 
without reference to their politics Whatever prosperity 
they are found to possess, can be attributed solely to its 
operation. We have, therefore, recommended it to the 
imitation of this country. But we have to lament, that 
some of those who have opposed our views, have refused 
to draw the distinction, and have seized on the vices of their 
politics, as objections to the principles of their economy. 

Applying the above principles to the United States, we 
shall discover, that during the prosperity which they en- 
joyed in the first twelve or fifteen years subsequent to the 
French revolution, the labour power of the country was 
fully exerted. The wars in Europe creating a constant 
market for their agricultural products; the carrying trader^ 



Political Economy, 199 

and the various branches of business connected with it, gave 
er.ployment to the greater portion of their labour. Agri- 
culture and commerce were then the characteristic pur- 
suits of the nation. Literature, science, and the arts, were 
but little cultivated; and few original works of importance, 
were produced. Those liberal professions, however, which 
are connected with the ordinary transaciions of society, and 
are made the business of individuals, flourished with a vi- 
gour unsurpassed in any other country. Of this character 
are politics, medicine, and law. The improvements those 
sciences have undergone, and the ability of the inhabitants 
devoted to them, place the United States in a very favour- 
able light as respects the intellectual powers of its citizens, 
and excite auspicious hopes for the future* 

Turning our attention to the situation of the nation, at 
the present time, with reference to the principles laid down, 
it is obvious, ihat the sources, which formerly absorbed the 
superaboUnding labour power of our country, have ceased 
to exist, and consequently that a portion of the population 
"which was occupied by them, is daily thrown out of employ- 
ment. Hence we notice the effects, we have described, as 
characteristic of such a state of things. Consumption isi 
less in amount, and consequently the value of almost every 
species of property is on the declme; bankruptcies are nu- 
merous; credit nearly extinct; the circulation stagnant; 
labour fallen in price; workmen discharged by their em- 
ployers; and the number of the poor augmenting. 

As this is the most unfavourable state in which a nation 
can find itself placed, it is the duty of the statesmen, to 
whose hands is confided its direction, to inquire into the 
causes which have created those unfavourable circumstan- 
ces. If they find them to be merely transient, temporary 
remedies adapted to alleviate present distress, or to enable 
the community to sustain the shock of passing events, 
should be sought for and applied. But if found to origi- 
nate in causes, which cannot be confidently anticipated to 
disappear of themselves, it is also their duty to devise a new 
system of policy, adapted to the new situation of the nation. 
If the class of industrious poor be found unemployed, and 
their production at a stand, the state should devise some 
mode to procure them employment, and give a fresh im- 
petus or a new direction to their production. If the con- 
sumption of the productions of the industrious poor, on 
v/hich they depend to obtain the comforts and necessaries 



200 jimerican Policy. 

of life, and to pay the taxes that are required for the sup- 
port of society, be diminishing, remedies should be speedily 
applied to counteract this injurious operation. The ne- 
glect of these important points in legislation, may over- 
whelm a large portion of society, hitherto happy, prosper- 
ous, and contented, vviih suffering and calamity; and a con- 
sequent feehng of discontent and inflammatory excitement 
be occasioned, which is greatly to be deprecated. 

We apprehend the situation of our country is of the 
above character Agriculture, commerce, the retailing of 
the fabrics of foreign countries, and the branches of busi- 
ness subordinate thereto, formerly gave full occupation to 
the greater part of our people; but the foreign markets, 
which were heretofore opened, being now closed to our 
agriculture; our commerce, much, contracted; the capa- 
city of the people to consume diminished; those occupa- 
tions have become overstocked, and no longer give full or 
profitable employment to those, who are engaged in them. 

In the present posture of affairs, there are no rational 
indications, which can lead us to expect, that those pursuits, 
while it continues, will give full employment to our industry: 
and it surely cannot be urged, that this or any nation, should 
trust its prosperity to the possible occurrence of favourable 
accidents. Yet, while we continue to direct our industry 
ehiefly to those employments, we must depend on the 
contingent circumstances of a war, or deficient harvests in 
Europe, for its maintenance, and to procure adequate mar- 
kets for our productions, when carried to the extent of our 
productive power In the meantime, the non-necessary class 
of producers, must constantly increase; its capacity to pursue 
the vocaMons, in which it was engaged, must lessen; its 
means of sustenance daily decline; and the whole retrograde 
from the higher species of labour to the lower. The inferior 
labourers thus pressed upon, while employment is de- 
creased, must be thrust into pauperism, and come on the 
public for support. 

If these revolutions take place quietly, from operating on 
a sluggish populcJtion, the only effect will be, to place society 
b^ck in the position, it h^d previously occupied, before it had 
known its day > of prosperity; or had acquired a taste for, 
with a knowledge of. the indulgences and refinements of 
adv tnced civilization, growing out of its increased wealth 
and the culiivatK^n of iiitelltctual enjoyments, in the fine 
arts, letters, and science. But should this retrocession be 



Gloomy J\'*ews. 2.01 

resisted, and a struggle once commence against this state 
of things, inevitable if left to themselves, it is utterly im- 
possible to calculate the course it might pursue, or the 
aspect it might assume. All the ills, that universal experi- 
ence has shown to be the concomitants of want of employ- 
ment, are incurred, and can only be avoided, by opening 
new means of occupation, as the old disappear. Every nation 
in Europe, that is esteemed wise, has directed its attention 
to manufactures, not only as the chief source of wealth and 
power, but as the most salutary mode of absorbing the ac- 
cumulating class of non-necessary producers. It now rests 
■with us to imitate in this respect the examples, by adopting 
the experience of the most illustrious people of ancient and 
modern times; or, by determining to procure experience 
for ourselves, to run through a course of suffering and dis- 
tress. But, when exhausted by the process we have under- 
gone, who can answer for the recovery of our past state of 
prosperity; whether we shall rise to that greatness, to which 
we have been looking forward with pride and exultation; 
or sink into the feebleness and debility that have always at- 
tended those nations, which have neglected the sound policy, 
of distributing employment of every kind, throughout their 
population. 



NEW SERIES. 
No. I. 

'*Is commerce of importance to natiopal wealth? Ours is at the Joivest 
point of declension. Is a violent and unnatural decrease in the value of land, 
a symptom of national distress? The price of improved land, in most parts 
of the country, is ranch lower than can be accounted for by the quantity 
©f waste lands at market; and can only be fully explained bi/ that want of 
public and private confidence, ivhich are so alarmingly prevalent among- 
all ranks, and which have a direct tendency to depreciate property of 
every kind. Is private credit the friend and patron of industry? That most 
useful kind, which relates to bor-owing and lending, is reduced within the 
nairowest limits, and this still more from an opinion of insecurity thnn from 
a want of money. 

* This is the raerancholy situation to which we have been brought by 
these very councils" [of pnrchasina; cheap goods abroad, and thereby des- 
troying the iiidustr)' of our own citizens] *** "which, not content with 
having conducted us to th* brink of a precipice, si em resoUed to plunge 
us into the abyss that awaits ns below Here, ray country men, ii pt lied 
by eveiy motive that ought to influence an enlightened people, let zis make 



202 Three Grand Stafiles. 

a firm stand for our safety ^ our tranquillity, our dignity ^ our reputation. 
Let us at last break the fatal charm ivhich has too long seduced us from 
the paths offeUcity and prosperity ''^ Federalist, No. XV. 

Philadeltihia^ November 15, 1819, 
THE reasoning, in our former addresses, in favour of af- 
fording adequate protection to that porion of the national 
industry engaged in manufactures, might have appeared in- 
tended solely for the benefit of the manufacturers, distinct 
from the rest of the conr»niunity. This would be a great 
misapprehension of our views, which are directed to the 
promotion of the permanent prosperity of the nation, on a 
grand and liberal scale. So close and intimate, in fact, is the 
connexion between the different interests of the same 
country, that each must participate in the advancement or 
decay of any of the others. It is therefore as impossible for 
either agriculture, manufactures, or commerce, to suffer 
severely, without the others partaking of the evil, as for one 
of the members of the human body to be maimed without 
the whole frame being affected. This theory, always advo- 
cated by the wisest political economists, has been com- 
pletely corroborated by the recent experience of the United 
States, in which the decay of so large a portion of the 
manufacturing establishments has spread distress and em- 
barrassment over the whole country. 

In the present addresses, we shall attempt to prove, by 
facts, founded on indisputable authority, quoted at full 
length, and by fair and logical deduction, — 

I. That there is no prospect of a favourable change in the 
European markets for our staples. 

II. That the promotion of manufactures is in the most 
eminent degree beneficial to agriculture. And 

III That the markets for our agricultural productions, 
throughout the world, being generally glutted, it would be 
unwise to divert to farming or planting any of the persons 
usually devoted to manufactures, even if they were all capa- 
ble of those employments. 

The three grand staples of our country are cotton, flour, 
and tobacco, which form nearly three fourths of the total of 
our exports, as may be seen from the subjoined table. Their 
great extent and h.gh prices have enabled us to pay for the 
extravagant amount of our importations, and greatly enrich- 
ed our farmers and planters. We enjoyed the blessing, and 
never anticipated a change. We sailed gaily along, with 
wind and tide in our favour, and without a dark speck in 



Reduction of the Price of Cotton, 



203 



the horizon. No louring storm was anticipated. But the sky 
at length became overcast. The hurricane arose; and, in its 
course, not only prostrated some of our most wealthy citi- 
zens, who had invested their entire fortunes in those staples, 
but greatly inipaired and impoverished the resources of the 
nation. 





1815. 


1816. 


1817. 


1818. 


Total Domestic Exports. 


Dolls. 
45,974,000 


Dolls. 
64,782,000 


Dolls. 
68,313,500 


Dolls. 
73,854.437 


Flour - . - - 
Cotton - - - - 
Tobacco . - - - 


6,202,000 
17,529,000 
8,253,000 


6,712,000 
24,106,000 
12,809,000 


17,751,376 

22,627,614 

9,230,(20 


11,576,970 

31,334,258 

9,867,429 




31,984,000 


43,627,000 


49,609,010 


52,778,657 



It is impossible for any man of enlarged and liberal views, 
to examine this table even superficially — to consider the 
immense reduction in the prices of those articles — and the 
limitation of the market lor them, without feeling dismay 
at the prospects that present themselves to our country, and 
an unalterable conviction that if we wish to secure its pros- 
perity, happiness, resources, and real independence, a radi- 
cal change in our system is imperiously necessary. 

Cotton. - 

The alarming depression in the prices of our great sta« 
pies, came on our farmers and planters unawares. There 
were, nevertheless, unei ring symptoms of the change, more 
particularly so far as regards cotton. Intelligence had been 
received in this country of large orders sent to the East 
Indies for that article, and it was almost prophetically an- 
nounced, in 1817,* that the price of ours would necessarily 
be greatly reduced. 

A considerable time previous to the close of the last ses- 
sion of Congress, the most explicit accounts had been re- 
ceived from England of the great progress making in the 
consumption of the East India cotton, and its alarming 
interference with that of the United States. Most of the 
circulars of the eminent merchants of Live? pool of that | 
period, conveyed this view distinctly. Out of a number now | 
in our possession, we submit an extract from one written 

* Memoir on the culture and manufacture of cotton, by Tench 
Coxe, passim. 



2® 4 East India Cotton. 

by John Richardson, of Liverpool, and dated the Uth of 
November, 1818. 

'' It was confidently expected by many, that prices would 
<' have rallied before the close of the year: but the immense 
" quantity of liasi India cotton which is weekly forced on 
^•the market by auction, renders this speculation extremely 
" uncertain; particularly as by a recent discovery in the firc' 
^' fiaration of Bengals and Surats^ the sfiinners art enaoled 
^^ to make better yarn and sfiinjiner nuinbers; this has very 
" materially interfered with the consumfirion of jiinerican 
'' cotton^ and will firevent it from ever reaching such prices 
^^ as it has of late years done^ 

This letter arrived in Philadelphia in December. There 
was then ample time to profit by the important information 
it contained. But its salutary warnings, like those of 1817, 
were totally disregarded. The parties immediately inter- 
ested, and the country at large, reposed in a dangerous se- 
curity. There were no preparations made to parry the stroke, 
by the infallible means of providing a home market, a mea- 
sure dictated by every principle of regard for self-interest, 
as well as for the welfare of the nation. The duty of twenty- 
seven and a half per cent, on cotton goods, (except on those 
at or below twenty-five cents per square yard, which are 
dutied as at twenty-five cents,) remained unaltered, not- 
withstanding the earnest and reiterated applications of the 
manufacturers — the ruin of hundreds of our best citizens— 
the suspension of establishments on which millions had 
been expended — and notwithstanding so large a portion of 
the men who had been employed in them, were driven to 
idleness and want, many of them with large families. A 
prohibition of low priced muslins at that period, and an 
advance of duty on high priced to 40 per cent, would have 
produced such a great increase of consumption in the 
United States, and of course such a reduction of the quan- 
tity in the British market, as to prevent any material de- 
pression in the price, and would have saved the planters 
and the nation millions of dollars, as will appear in the se- 
quel. 

Great Britain derives nine-tenths of her supplies of cot- 
ton from the East Indies, South America, and the United 
States. Of each in order. 

East India Cotton, 
The importation of cotton from the East Indies into the 



Prices of East India and jlmerican Cotton, 205 

British dominions, to any considerable extent, is of recent 
date. The whole amount in twelve years, from 1802 to 1813 
inclusive, was only 188,911 bags,* or an average of about 
15,700 per annum. 

There have been two objections to the general use of this 
species of cotton, the shortness of the staple, and the great . 
want of care in cleaning and packing it. The latter has been | 
in a great degree obviated, so far as regards a large por- 
tion of what is received in England. But in some cases it 
still exists; hence the great difference of price between the 
extremes, which is frequently three or four pence per lb. 

The staple has likewise been considerably improved. We 
have now before us printed circular letters which shed 
strong light on this subject, and cannot fail to be duly ap- 
preciated by every enlightened planter. One is from the 
house of Humberston, Graham, & Co. of Liverpool, and 
dated as early as June 28, 1817. '' With the chief part of 
" the Uplands now brought forward. East India cotton be- 
^^ gins materially to interfere: and if the quality of the crop 
" yet to be received should not improve, this will occur, to 
" a more considerable extent; for in the late imports of 
*' Bengal cottoij, there is a decided improvernent in staple; 
'< and, by reference to the annexed list of sales, it is evi- 
'' dent they are coming into more general use.^^ ^ 

There is likewise an item in the London price current 
for August 31, 1819, which confirms the preceding state- 
ment. Surat cotton is therein quoted at 7d. to 9^d.: but 
Sur at extra fine \% 9d. to \\\d. This implies a great im- 
provement, either in the quality ot the seed, or the mode 
of preparation, or both: and when the strong incentive to 
further improvement is considered, it may be presumed 
that every effort will be made, and no doubt successfully, to 
remove any existing objections It is to be observed, that in 
no other price current that we have seen is this item of 
Surat extra fine cotton to be found. 

One other remark is called for. The best Surat cotton in \ 
the Liverpool market generally comes very near m price ' 
to the 1 eunessee. ; 

January 2, 1819. 

Sural, fair to good 
Tennessee 



d, d. 

11 to 141 
14i to 15^ 


June 2, 1819. 
d, d. 
9 to lOi. 
10| to ll-|. 


Seybert, 92. 
s 





%Q6 Imfiortation of East India Cotton. 

The improvements made in the culture and preparation 
of the East India cotton, have been greatly promoted by 
the very high prices of ours and those of the Brazils^ 
Bourbon, &c. It is only wonderful, that they did not take 
place much earlier. 

We annex a table of the importation of East India cot- 
ton into Great Britain, for two successive periods, each of 
four years. 





Bags. 




Bags. 


Imported in 1811 


14,646 


Imported in 1815 


23,357 


1812 


2,607 


1816 


30,670 


1813 


1,429 


rr 1817 


117,454^ 


1814 


13,048 


1818 


247,604 



31,730 419,085» 



This table affords matter for serious reflection, not 
mereiy to the cotton planters, but to ihe people and go- 
vernment of this country. It speaks volumes on the rapid 
strides making in the British markets by the East India 
p~cotton. The increase is probably without example. It was 
nearly four- fold in 1817 — and more than two-fold in 1818. 
/ The capacity of the East Indies to produce this article is 
without limits. By a Calcutta paper of Jan. 20, 1819, it 
lappears that 

Bags. 
The export of cotton from Calcutta in the year 1818 was 336,848 
from Bombay - - - 323,807 

660,655 



equal to about 190,000,000 lbs. 

It is supposed by many of our citizens, that there is a 
radical and insuperable inferiority in the East India cotton. 
This in an egregious error. The finest muslins in the 
world are manufactured in Hindostan, of the cotton of that 
country. It therefore follows, that the great superiority as- 
sumed for ours cannot be regarded as any security against 
the East India competition We are informed by a writer 
of high authority, that '' a fine sort of cotton is still groivn 
" in the eastern districts of Bengaly fit for the most delicate 
" manufactures"^ 

* Seybert, ibid, and Journal of Trade and Commerce, vol. ii. 
page 113. 

I Colebrook's Remarks on the husbandry and internal commerce 
ofBengal, page 138. 



Price of labour in ^le East Indies. 2Cl7 

^^ A perennial B fie cies^ which produces cotton of uncommo7i 
^* beauty and excellence^ has been already introduced from the 
'^^ Island of Bourbon. ^^^ 

The immense extent of the cotton district, and the cheap- 
ness of labour, in the East Indies, render that countiy a 
most formidable rival to the United States. In the event of 
a great extension of the culture of this ^''fne cotton^ fit for 
the most delicate manufactures^^ it will probably exclude 
us from the European market almost altogether: and un- 
less greater protection than three cents per lb. be afforded 
to our planters, it may very materially and injuriously af- 
fect the consumption of their cotton in our own markets, 
" The price of their daily labour, when paid in money, 
"may be justly estimated at little more than one ana sica, 
^* but less than two.fience sterling. In cities and large towns, 
" the hire of a day labourer is, indeed, greater; because 
^' provisions are there dearer, and the separation of a man 
"from his family renders larger earnings necessary to 
" their support. But even in the neighbourhood of Calcutta, 
" men may be hired for field labour, at the rate of two 
" rupiyas and a half per mensem, which is equivalent to 
''two pence halfpenny per diem. Compare this with the 
^' price of labour in the West Ipdies, or conapare with it 
"the still cheaper hire of labour by a payment in kind, a 
" mode which is customary throughout Bengal. The allow- 
"ance of grain usually made to strong labourers, cannot 
" be valued at more than one ana, and does in reality cost 
** the husbandman much less. The average would scarcely 
''exceed a penny half-penny. In short, viewed in every way, 
" labour is six times, perhaps ten timesy dearer in the West 
" Indies than in Bengal.**^ 

" The prime cost [of cotton] reduced to English money, 
" is less than two-pence per pound avoirdupois. "| 

In seasons of difficulty we eagerly catch at any hope, 
however slender. Hence many of our citizens shut their 
eyes to the real state of the case. They flatter them- 
selves that the East India cotton has proved so far inferior 
to ours, that the competition is nearly at an end. This 
fond hope is fostered by various letters from England, and 
paragraphs from English papers, stating that overland dis^ 
patches had been forwarded, countermanding the orders 
previously given for shipments of India cotton, on account 

• Idem, p. 143. f I^^ero, p. J31. 4: Idem, p. 142. 



2oa 



Reduction of Price of Cotton. 



of its extreme worthlessness. To this is added another ar- 
ticle of information, that orders had been received from 
Russia for cotton yarn, expressly stipulating, that proof 
shall be made on oath that it is not spun of East India 
cotton. 

Were the inference drawn from this intelligence correct, 
it might afford some consolation to our planters, as afford- 
ing a distant prospect of retaining their ascendency in the 
British markets. But if unfounded, it may lead to perni- 
cious errors. We shall therefore fully investigate the subject. 

The importation of cotton from the East Indies has not 
diminished. For the first seven months of 1818, it was only 

bags^ 130,000 
Whereas for the same period in 1819, it was ! 4 1,900* 

We do not, however, lay much emphasis on this fact. 
The countermand, it may be said, could not have taken ef- 
fect. This we admit. But the price affords an infallible cri- 
terion. Had East India cotton proved so very indifferent as 
is stated, the price must have fallen in an equal ratio. Let 
us examine ihe fact. It is of great importance, and tends 
to ascertain the future prospects of this country in regard 
to its greatest staple. 

We annex the prices of New Orleans, Georgia, Surat, 
and Bengal cotton, in Liverpool, on the 28th of November, 
1818, previous — and on the 12th of May, 1819, subsequent 
— -to the ruinous reduction of price, and likewise on the 
30th of September, 1819. 

JsTov. 28, 1818. 
d. d, d. 



May 12, 1819. 
d. d 



New Orleans, 18 to 231 

Georgia Bowed, 1 7 to 20 
Surat, 
!B.engal, 






•201 
12 



11 to 14^" 






lOto 14 
7tol2j 

September 30, 1819. 
New Orleans, 13 to 16 " 
Georgia Bowed, 12|^to 14 
Surat, 8 to 12|- 



11 
7 
5|to 



to 13 

to 101 



^< 



12i 
12 

H 



Bengal, 



7ito 9 J 




General Average. 
JStov, 28, 1818. May 12, 1819. Sept, 30, 1819. 
New Orleans and Georgia, \9\ \^ 13| 

Surat and Bengal, lOf 7f|- 91 

From these comparisons, the following results arise: — 



* Rathbone, Hodgson & Co.'s Price Current, August 31, 1819. 



South American Cotton. ^09 

I. On the 28th of November, 1818, East India cotton 
was eight pence three farthings lower than ours; whereas, 
on the 30th of September, 1819, the difference was only 
four-pence half-penny. 

II The reduction on the 12th of May on our cotton was 
about 34 per cent., and on the East India only 29. And 

III. (By far the most important,) East India cotton rose, 
from the 12th of May to the 30th of September, 19 per 
cent.; whereas ours rose only six per cent 

These are most serious facts, taken in connection with the 
extraordinary importations of the East India cotton during 
the last and present years; which might have been expect- 
ed to depress that species extremely. It must appear clear, 
that it is rapidly gaining on ours, and b^ids fair, as we have 
stated, to overtake and supersede it in that market. 

South American Cotton, 
Our cotton planters are not menaced with danger from I 
the East Indies alone. South America presentfi equal cause 
of uneasiness. The importations frojia that q carter and 
Portugal, during the year 1818, into Great Britain, were 
180,077 bags. We annex a statement of the several 
amounts: — 



Demerara, Berbice and Surinam, 24,892 

Pernambuco, 45,584 

mo 11,121 

Bahia, 38,854 

Maranham, 37,687 

Other parts of the Portuguese dominions, . 21,939 

Total imports in 1818, . 18v/,U77 

Let it be observed, moreover, that the increase of the 
Brtjzil and Portugal cotton has been^ during that year, nearly 
60 per cent.; as the amount in 1817 was only 1 14,8 1 6 bags. 

The South American cotton is considerably superior in , 
quality to that of the United States, with the exception of f 
the Sea Island. This is manifest, from the following extracts 
from the Liverpool Price Current^ of the l^th July, 1819. 
fier Ih^ per Lb, 

d. d. d. d. 

^Xjeorgia bowed, 11a 13 Demerara and Berbice, 13 a\7\ 
Kew Orleans, li«15 Surinam, 16 a 17^- 

Xenuessee, 1 a 1 1 Pernambuco, 1 6^ a 1 8|^ 

IVIardnham^ 15 a 16 

Bahia, 15|(zir 

-J 



310 Rafiid reduction f)f Price* 



"*" United States Cotton. 

From 1802 to ISOr inclusively, ajid also in ISII, 1815, 
1816, and 1817, of the cotton imported into (ireat Britain, 
the United States furnished about forty per cent. The re- 
lative proportion was reduced, in 1818, to thirty per cent, 
in consequence of the p;reat increase of the cotton of the 
Brazils and the East Indies, parucularly of ihe latter. 

Having stated the increase in the importation into Great 
Britain of East India and Brazil cotton; in order to enable 
you, fellow citizens, to form a correct comparison, we sub- 
join a statement of the imports from the United States, for 
two periods, each of four years. To render the comparison 
more accurate, v/e have chosen periods remote from each 
other, and omitted years of non intercourse, embargo, and 
war. 

Imjiort of United States Cotton into Great Britain. 
Bags. Bags. 

1804 . . - X04,103 1815 - - - 103,037 

1805 - - - 124,279 1816 - - - 166,077 

1806 - - . 124,939 1817 :^ - - 198,917 

1807 - - - 171,267 1818 - - - 205,881 



524,588 673,912* 



It appears therefore, that the importation of our cotton 
has increased only about 26 percent, in eleven years; where- 
as, the East India and Brazil, as we have seen, increasedy 
the former 1 }0y and the latter 60 per cent, in one year J 

We are apprehensive that the fatal effects of the fluctua- 
tion of the markets for our siapleson the fortunes and happi- 
ness of our citizens, and the prosperity and resources of the 
nation, are not duly considered. The subject demands the 
most serious reflection. 
> r— On the i8ih of January, 1819, the average price of Loui- 
siana, Tennessee, and Georgia cotton, in the Philadelphia 
' market, was 33 cents peir pound,t which had been about 
the rate for months before. No man then calculated on 
-any material reduction. Hundreds of thousands of pounds 
hat^ been, about that period, bought and sold at that price. 
"W iinin a week, intelligence arrived of the depression in the 
Liverpool market, which unfortunately regulates ours as 
certainly as the heat and cold of the atmosphere i^egulate 

♦ Seybert, p. 93c f Grotjjin's Price Current. 



^uinoU'^ Losses, 211 

the rise £nd decline of the mercury in the barometer. On 
th'dit day se'ennight, that is, on the 25th, cotton sunk here 
to an clvera^^e of 26^ cents * A similar reduction took place 
in every part of the United States. _^_j 

The amount of cotton then belonging to citizens of the 
United States, was probably about 1()0,()00,0()0 pounds; 
partly in Europe, on consignment; partly on sea; and the 
residue in this country. 

The quantity then on the hands of the merchants, pur- 
chased at 33 cents, we will assume to have been 20,000,000 
pounds.t 

Under this distribution of the article, there obviously^ 
arose to the planters a solid reduction of their supposed in- 
come, on which their expenses had been predicated, of 6|. 
cents per lb. on 80,000.000 pounds, or 5,200,000 dollars; 
and lo the merchants a j>ositive loss of 6|- cents per lb, on 
20,000,000 pounds, equal to 1,300,000 dollars. ^^,^ 

During the succeeding months, the price fell gradually, ! 
till the 14th of June, when it arrived at its ultimate point of 
depression. Louisiana cotton was then at 17 cents, and 

* Grotjan's Price Current. 

fit must be obvious that in this estimate we do not pretend to 
critical exactness, which the nature of the case forbids. But there 
are data to satisfy the reader that ihcre are no material errors. The 
importation of cotton from the United States into Liverpool alone, 
from the 1st of January to the 27th of March, 1819, was 47,140 bags, 
or 14,142,000 pounds. i: most of which must have been purchased 
and shipped previous t» the depression in our markets. And, as the 
fall in the English markets commenced in November, and continued 
throughout the month of December; it follows, that ail the cotton 
that arrived in those months, though purchased at the high, 
must have been sold at the reduced rates It cannot therefore admit 
a doubt^ that there were at leust 20,000,000 of pounds the property 
-of our merchants, at the time when the article first sunk in price. 

It now remains to establish the fact, t>.at the whole quantity on 
hands belonging to citizens of the United States, on which the re- 
duction of price took place, was at least 100,000,000 of pounds, as 
we have assumed. The average crop of this country is about 110 or 
120,000,000 of pounds. The export alone, in 1818, independent of 
the home consumption, was about 92,000,000 of pounds § As the 
reduction took place in England before there was any consulerable 
quantity of the last year's crop sold, and when there was a quantity 
of the former crop on hands^ It is clear that we have made a very 
low estimate. 

^ Cropper, Benson, and Co.'s Circular, 4th Month 1st, 1819. 
§ Letter from the Secretary of the Treasuiy. 



^ 12 Ruinous Losses, 

r" Georgia and Tennessee at !6, being an average of 16|, or 

a lin ther reduction of iO cents per p -und, since the 25ih of 

January, or 16^ cents since the .cSth of ihat month, equal 

to 50 per cent, from the Jatter date. We will trace the ef- 

"fects of this second reduction. 

Suppose that 50,000,000 pounds of the cotton remained, 
one half in the handii of the planters, and the other in those 
of the merchants; an additional positive loss resulted to the 
latter, of 2,500,000 dollars, and as positive a diminution of 
profit to the former, oi an equal sum — 2,500,000. We now 
submit a view of the whole: — 

Fi»'st reduction of profit to the planters, jg 5,200,000 

Second - 2,500,000 

7,700,00© 

First actual loss to the merchants, - - . 1,300,000 
Second, 2,500.000 

3,800,000 

Total loss, S 11,500,000 

The resources of the nation^ and its capacity to discharge 
its engagements to Europe, were diminished to exactly the 
same amount. 

From these losses, however, is to be deducted the sub- 
sequent small advance in the price of such portion of the 
crop as remained on hands after that advance took place. 

We have stated the effects of the reduction of price on 
the great body of the planters and on the nation. We will 
now present it in the case of a single planter, who raises 
20 000 pou!tds of cotton annually, at an expense of ten cents 
per pound.* We assun^e the price at Savannah, in January, 
at 30 cents^ and in June at 15, which was about the actual 
state of the market. 

Old prices. 
20,000 lbs. of cotton, at 30 cents, - . - . g 6,000 
Deduct expenses, 20,000 lbs. at 10 cents, - - 2,000 

Net profit, 4,000 

Prices in June. 

20,000 lbs. of cotton, at 15 cents, - - . . 3,000 
Deduct expenses, » - , . 2,000 

Net profit, 1,000 

* The expense of raising cotton is variously stated, at 8, 10, and 
12 cents per pound. We h ve assumed ten cents, as a medium; but, 
should ih.li assumption be somewhat incorrect^ it cannot materiallj 
Affect the question. 



JRuinous Losses, 21 St 

It thus appears that the planter's profits are diminished 
1)0 Icbs than 75 per cent, by a drpendence or foreign mar- 
kets! However, it may be said, that by the policy we pursue, 
of '* buying" abroad what we can purchase cheaper than at 
" home^^ he probably saves from two to three hundrd dollars 
per annum in the clothing of himseifand his slaves, which 
may be se' off to reduce the loss of the three thousand dol- 
lars thus sacrificed! But there is another item in the ac- 
count which deserves attention, and in which humanity, 
justice, and sound policy, loudly protest, with a voice of 
thunder, againsi the admission of any off'-set. This item is 
the calamity, the sufferi-ng, of thousands and tens of thou- 
sands of men, women, and children, whom a fatal policy 
dooms to idleness, to distress, to want, and too often to vice 
and guilt, the general companions of idleness! In the eye 
of an enlightened statesman, worthy of the high trust of 
ruling the destiny oi nations, this item very far outweighs 
the consideration of the planter's profits, however impor- 
tant the subject may be in that point of light. 

This is a striking commentary on political economy, and 
is of immense value in forming an accurate estimate of the 
course this nation ought to pursue. It sheds a blaze of light 
on the never-enough-to-be-lamented destruction of so large 
a portion of the cotton establishments, which, had they been 
protected, would have saved the planters from this catas- 
trophe. A planter, whose expenses are predicated on an 
income of four thousand dollars per annum, which he sup- 
poses beyond the power of fortune, suddenly awakes out of 
his golden dreams, and finds his revenue reduced to one 
thousand, the obvious and predicted result of the short- 
sighted policy of " buying cheap bargains abroad;^* of send- 
ing the raw material three thousand miles, and receiving 
it back encumbered with all the expenses of two voyages, 
amounting to six thousand miles, and at an advance of from 
four hundred to two thousand per cent.; of fostering, che-. 
rishing, and nourishing manufacturers in Hindostan, Great 
Britain, and elsewhere, and dooming our own to idleness. 
Never did impolicy pay a heavier forfeit. Would to heaven 
our country may take warning by the ruinous consequen- 
ces! 

Who can regard this state of things, without heaving a 
sigh over a mistaken system, which inflicts distress on so 
large and so valuable a portion of our citizens? Who, that 
has a spark of regard for the honour or happiness of his 



214 Lamentable State of Affairs, 

country, or any stake in its welfare, but must shudder at 
the idea of a great nation, like this, depending for its pros- 
perity and resources on the precarious tenure of the prices 
in foreign markets, at a distance of three thousand miles? 
How many bankruptcies this catastrophe must have pro- 
duced! what misery and desolation must it have spread 
abroadi how many families, with towering prospects, must 
it have humbled in the dust! what a diminution must it have 
created in our means of paying for those expensive and 
pernicious luxuries on which we blindly lavish our trea- 
sures! 

And why, fellow-citizens, have we inflicted on ourselves 
this calamitous result? In order to purchase cambrics, and 
muslins, and gauzes, and mull mulls, and boglepores, and 
a hundred other articles with cramp names, a few cents 
per yard cheaper than our fellow-citizens could manyfac- 
lure them! And hence we spread distress over the land — 
exhaust the treasures, enfeeble the strength, and destroy 
the resources, of our country — sweep away three-fourths of 
the revenues of our planters — devote our merchants and our 
manufacturers to bankruptcy — and the labouring class of 
our citizens to idleness and its ruinous consequences! Is 
this the nineteenth century, which prides itself on its illu- 
mination? Is this the brotherly love we bear to those who 
are embarked in the same cause with us — who have every 
possible claim on our protection and kindness, and many of 
whom risked their lives, shed their blood, and spent their 
fortunes, to secure national independence, much of whose 
value depends on protection in the acquisition of property? 
of which they are bereft by a ruinous policy, discarded by 
all the nations of Christendom, except Spain, Portugal, and 
the United States? 



We have hazarded a broad, unqualified assertion, that a 
due degree of encouragement to the cotton manufacture, 
wo d have secured a domestic market for so large a por- 
tion of the raw material, as to preserve what was exported 
from any material reduction of price abroad. As this is a 
cardinal point in the present question, we shall endeavour 
to establish our position so as to remove the doubts of the 
most sceptical. 
r-;T[n the year 1805, the whole of the cQtton used in manu- 



Imjiortation of Cotton into Great Britain. 215 

factures, in the United States, was iOOO bags; in 1810, 
10,000; and in 1815, 90,000.* Of course it follows, that 
the manufacture was not introduced to any considerable .ex- 
tent till after the year 1810. In the Marshals' returns of 
that year, the whole amount of the cotton, woollen, flax, 
henip and silk manufactures, is stated ai 41,000,000 of 
dollars.t The cotton may be estimated at about 5 or 6 
millions In the short space of five years, that is, in the 
year 1815, the consumption rose, as we have stated, to 
90,000 bagb, or 27,000,000 of pounds, nearly one-fourth of 
the whole produce of the Lnited States in the most favoura- 
ble year — and, let it be distinctly observed, that it was about 
one^third of the amount, im/iorted into Great Britain in any 
year^from 1802 to 1815, excefit three. 

1 otal Imfiortation of Cotton into Great Britain, 

Bags. 



Brought over, 2,167,436 

1802 - - 281,383 1810 - . 561,173 

1803 - - 238,898 1811 - - 326,141 

1804 - - 241,610 1812 - - 261,205 

1805 - - 25l?,620 1813 - - 249,526 

1806 - - 261,738 1814 - - 287 630 

1807 - - 282,667 1815 - - 270.189 

1808 - - 168,138 _!_» 

1809 - . 440,382 4,123,300^: 



^ 2,167,436 Average, 294,521 

Thus it appears that the average importation of Great 
Britain for fourteen consecutive years was 294,000 bags, of 
which a very considerable portion must have been exported. 
We have no data to ascertain the quantity. But by a docu- 
Hient now before us, it appears, that the exportation in 1 8 1 8, 
was nearly 60,000 bags. If, therefore, we suppose that there 
was only half that quantity exported in each of those years, 
it follows, that the manufacturers of the United States con- 
sumed in 18 \5y more than one-third of the cotton used in 
Great Britain in that year^ or the average quantity for four- 
teen years! 

This fact, striking in itself, acquires great additional force 
from various considerations connected with it, some of 
which we shall detail. 

♦Report of the Committee of Commerce and Manufactures. 
Weekly Register, Vol. IX. p. 448. 
t Tench Coxe's Report, ii. 37. 
t Seybert, 92. 



216 Progress of the Cotton Manufacture* 

The manufacture in Great Britain was unremittingly 
fostered and protected by the government, by absolute pro- 
hibitions of calicoes; by prohibitory duties of 85 per cent, 
on cottons generally, which completely secured the home 
market; by drawbacks; and by every mode that ingenuity 
and sound policy could devise. It had likewise every advan- 
tage that could be afforded by most excellent machinery, 
long experience, enormous capitals, and by access to the 
markets of nearly the whole world. 

What a contrast! Not much less than between a stripling 
half grown, and a sinewy Hercules possessed of all the 
energies of manhood. We were comparatively unskilful. 
Our machinery was to be created. The establishments were 
mostly commenced by persons brought up to pursuits 
wholly dissimilar, and generally with slender capitals. The 
mantifactories were conducted often by very ignorant, and 
almost always by inexperienced artists. The duties on the 
rival articles, until the commencement of the war, were only 
15 per cent. Yet under all these numerous and weighty dis- 
advantages, the manufacture rose to such maturity in four 
or five years, as to supply the nation with all the cotton 
goods that it consumed during the war, except about four 
or five millions of prize and smuggled goods annually. To 
this degree of perfection it arose, without bounty, premium, 
drawback, or any assistance from government, except the 
doxible duties imposed for the sole and avowed purpose of 
meeting the exigencies of the treasury, and merely through 
the exclusion of foreign rivalship, by a war of two years 
and a half duration. 

The amount of cotton goods manufactured in the United 
States in 1815, was 24,300,000 dollars.* 

To this plain statement, we invite the calm and dispas- 
sionate attention of our fellow citizens There can be no 
fairer mode of argument, than to infer what may be done, 
from what has been actually accomplished. And therefore 
we ask, whether, after such a progress made, under those 
discouraging circumstances, there can be a doubt, that 
with suitable encouragement the consumption would have 
kept pace with the production? that is to say, ifi order to 
simplify the question, whether, having increased the con- 
sumpii )n in I'' years, ninety fold, viz fro.n iOOO bags, or 
300,000 lbs. to 90,000 bags, or 27,000,00' lbs. we should 

* Report of the Committee on Commerce and Manufactures. 



State of the Liverpool market. 2 IT 

not be able in three or four years more to increase it from 
37,000,000 to 100,000,000 lbs? 

The rise in the price of our cottons in the British market, 
as stated from the price current of September 30, may lead 
our planters and merchants to hope that they will regain 
the ground they have lost, and thus lead to extensive specu- 
lations. This would probably prove a fatal error to hundreds 
of those who might be led astray by it, and exhibit another 
decisive proof of the insanity of a nation depending on con- 
tingent and fluctuating foreign mai^kets, when it can create 
and secure an unfailing domestic one, subject to but slight 
variations. 

The vital importance of the topic we here discuss, will 
justify us in submitting to our fellow citizens, a few strong 
extracts from the circulars of some of the most eminent 
Liverpool merchants, which bear decisive testimony to the 
correctness of ihe views we have given of this subject: '' The 
'* most remarkable increase of imports, has been in East 
" India cotton: and the stock of this description is consi- 
" derably heavier than it was. But the conaurnption of it U 
'' increasing very rafiidly; being now very probably not less 
" than 1000 bales per week more than it was last year.^^ 
Yates^ Brothers^ i!f Co. Liverpool, July 1, 1818. 

" Of Tennessees we have a less favourable opmion. They 
** are more on a level with good Bengals, and middling Su^ 
f* rats; and are likely to accompany them in any decline. 
" East India cotton, except Surats of a quality that is con- 
" vertible to the same purposes as ordinary Boweds and 
" Orleans, must decline; as the very heavy imports are not 
^Mikely to be checked till the crop of 1817, and perhaps 
^< not till that of 18 18, is shipped. Surats still leave a profit; 
" though Bengals lose considerably. But Bengals will pro- 
'* bably decline in India, so as to meet the decline here, and 
^' still continue to be grown and shipfied^^ Yates, Brother's, 
er Co. Aov. 10, 1818. 

" The use both of Bengal and Surat is become very con- 
" siderablc; and while there continues so great a relative 
^^ difference in price between them and the descriptions . 
"with which they come more immediately in competition, 
" there seems good reason to apprehend that their use will 
" continue to extend.*^ Cropper, Benson^ 4?* Co. Liverpool^ 
Wth Month 30th, 1818. 

" Our present heavy stock of East India coUon, which 
" will continue to increase for some time yet, and the fact 

T 



216 State of the Liverfiool market. 

" that it is getting more into use by the spinners altering 
'' their machinery for using it, on account of the very low 
^* prices, will prevent any considerable advance on Aineri- 
" car) cotton for the greater part of the next year." John Ri- 
chardson^ Liverfiool^ December 28th^ 1818. 

'^ The demand there now is for good Surat cotton, will 
" very seriously interfere with American cotton, partit u- 
" larly uplands of an inferior quality, and will have the ef- 
" feet of depressing them in price." John Richardson^ Jan. 
1, 1819. 

" From a review of the imports and stock at the end of 
<< each year, it appear*^ that there has been an increa,se in 
" 1818 in the consumption of India of 26,000 bags; of Brazil 
" also some increase; but a decrease of American of about 
« 12,00." Yates^ Brothers i^ Co. Liverpool, Jan 2, 18 ;9. 

" Upland cotton the leading article of import from the 
*' United States, is likely to be much interfered with by 
" East India cotton^ to the sfiinning of which many of our 
" mills are adapting their machinery ^ and many new ones are 
'' buildings solely calculated to consume it. There seem to be 
" no limits to the quantity that can be produced in that 
*' country, and which is materially aided by the low price 
♦' of labour. During the first six months of the last year, they 
^^ exported \00fi0O bales more than they did the preceding 
'* twelve months! Its extreme low price will force it into con- 
" sumption, to the exclusion of other descriptions,'* W, ^ 
James Brown 45J* Co. Liverpool^ Jan* 14, 1819. 

The following information is not only the most recent, 
but by far the most important. *' The demand for cotton 
^' during the whole of this month has been excessivf^ly 
^' limited; and the sales of all kinds do not exceed 18,000 
" bags, at a reduction, in that period, upon upland of \d, and 
"New Orleans of fc/. per lb. We quote Sea Island, ordinary 
*'to middling 26^?. to 29flf.; fair to good 30c/. to 34c/; and 
''fine 36c/. to 38c/. per lb. The small stock in this market 
" is held by very lew persons; and these prices are requi- 
'' red, although at the present moment no sales could be ef 
^^ fected at these rates; and some of the holders evince an 
^^ anxiety to sell. The importers of Alabama cotton have 
*' endeavoured to establish a distinction between this de- 
'« scription and Tennessee, in favour of the former: but 
*' both kinds are in the highest disrepute^ and cannot be va- 
'^^ lued at more than \2d. to \2ld. per lb. East India cotton 
" is not quoted lower. But we thmk the latest sales, both of 



Humiliating Contrast. 219 

«Suratand Bengal, have been on a decline of ^c/. per lb. 
« The highest quotation is only for the best Toomel 1 he 
<* present value of Brazil couon is, of Pernambuco, )8rf. 
<' to 19^.; Bahia \6\d, to I8flf.; and Maranham \e\d, to \7d. 
« per lb. The accounts of the trade in Manchester are very 
« unfavourable; and the absence of demand^ either for twist 
^^or goods, is severely felt. It is not, however, generc.lljr 
<« supposed that the spinners will, in any case, materially 
"di'iiinish iheir works for several months; when, if sus- 
" pension of shipments to the United States should still 
"continue, it will be impossible for them to proceed on 
"this very extensive scale." Rathbone^ Hodgson ^ Co, 
Liverfi'^ol, Sefit, 30, 18 1 9. 

To the sober reflection of the cotton planters we submit 
these important facts. They cannot be too deeply or seri- 
ously weighed. Their dearest interests are vitally involved 
in them. Abstracted from all considerations of the general 
prosperity of their country, which has fallen a sacrifice to 
the policy hitherto pursued — as well as of the wide spread 
scene of rmn that has swallowed up the fortunes and the 
happiness of so large a portion of their fellow citizens, en- 
gaged in manufactures, their own interest most explicitly 
points out the necessity of pursuing a different policy, and 
securing to themselves a home market, beyond the control 
oi foreign nations. Had this market been thus secured, 
it can hardly be doubted that so large a portion oi the cotton 
at present raised in this country would, we repeat, have 
been consumed at home, that the quantity exported would 
have experienced little reduction of price. 

The contrast between the situation of the British and 
American manufacturers is extremely striking, and must 
mortify the pride and excite the sympathy of every citi- 
zen who feels an interest in the credit of our government 
and the welfare of the nation. The British manufacturers, 
completely secured in the home market by prohibitions, 
and prohibitory duties, are struggling, with all their ener- 
gies, to monopolize not only our markets, but those of half 
the world. In this contest, they are aided in every way that 
can be devised, by a government which many of our citi- 
zens affect to despise. Whereas, our manufacturers only 
contend for the humble boon of secuidly in the domestic 
- market; and with whom do they contend? not with foreign 
nations — but with their fellow citizens in congress, whom 
they merely request to afford them a portion of that pro- 



S20 Eur ofieaii Policy. 

tection, which, as we have often repeated, England, France, 
Ru*>sia, Austria, and nearly all ihe other governments of 
Europe, afford their subjects engaged in manufactures!!! 

This paragraph would require a volurne of explanations 
— but we must be brief; and, referring to our former ad- 
dresses, shall barely observe, 

L That Austria prohibits the importation, throughout 
her whole dominions, of all kinds of silk, cotton and wool- 
len manufactures. 

II. That England prohibits silks, laces, calicoes, and 
manufactures of gold, with various other articles; and sub- 
jects cottons generally to 85 per cent — ij;lass to 114 — and 
chequered linens, manufactures of leather, tanned hides, 
Sec. &c. to 142 per cent 

IIL That Russia prohibits above two hundred articles, 
among which are all manufactures of wool, printed cottons, 
glass, pottery, silk, iron, leather, &c. &c. &c. 

IV. That France prohibits cotton twist, manufactures of 
wool, silk, leather, steel, iron, brass, tin, &c. &c. &c. 

It is therefore obvious, as already often stated, that thfe 
manufacturers of those countries enjoy a degree of foster- 
ing care and protection from their respective governments 
which our citizens of that class have never experienced— 
and the want of which has not only ruined hundreds of 
them — but inflicted more lasting injury on this country in 
five years, than it could have suffered in a war of twice the 
duration. 

We will suppose for a moment a majority in Congress 
to be composed of manufacturers; and such immense quan- 
tities of wheat and flour to be imported from Odessa, and 
of cotton from Brazil and the East Indies, as to reduce the 
price of those articles below the fair rate of affording a 
profit to the cultivator. Suppose that the farmers and 
planters, at every stage of their progress to ruin, were to 
supplicate Congress either to prohibit, or discourage by 
high duties, the importation of wheat, flour and cotton. Sup- 
pose, further, that the majority in Congress, resolutely de- 
termined to buy those articles " where they could be had 
^^ cheafiekt^* steadily rejected their petition. What opinion, 
fellow citizens, would you form on such conduct? would it 
not meet*with your most marked disapprobation? But is it 
not precisely the conduct that has been pursued towards 
the manufacturers? Have they not, in their career to ruin, 
earnestly and respectfully solicited protection from Con^ 



Profits of Cotton Manufactures. 22 1 

gress? Have not their entreaties been rejected?* Has not 
a luriire proportion of them been sacrificed by the ruinous 
poljcv of purchasing cheap goods abroad? And has not 
the nation at large shared in the sufferings inflicted on 
them? 



P. S. We have heretofore submitted various statements 
proving the extreme disadvantage of our. intercourse with 
Great Britain, and oiher foreign nations in the cotton 
trade. We now present it in a new point of view. 

We take the case of a company of cotton manufacturers 
in Manchester, commencing with a bale and a half of cot- 
ton, at fifty dollars per bale, which is the present price; 
working it up in two months into cotton cloths, at twenty 
cents per yard; investing the proceeds in cotton; manufac- 
turing this cotton in the same manner; and thus in regular 
succession, prosecuting the business, as is usual in such 
manufactories. It will excite astonishment, and appear in- 
credible, but is nevertheless true, that in the space of twenty 
months they can purchase with the proceeds of the bale and 
a half, the whole of the exports of the United States. 

We allow 50lbj<. per bale for waste; let the proceeds of 
the half bale go for the payment of wages; and assume 
four yards of cotion, at 20 cents per yard, as the product 
of each pound of cotton. 

Let it be observed, that 20 cents is a low average. We 
receive cambrics and muslins as high as a dollar, and a 
dollar and a half per yard, 

FirBt ofieration.^^Two months. 
One bale of cotton, net 250 lbs. produces 1000 
yards, which, at 20 cents, amount to • - g 200 



* Of above forty petitions presented to the House of Representa- 
tives of the United States, in 1816-17. by different bodies of manu. 
facturers, in various parts of tlie United States, praying for relief, 
there ivas not one read in the House! and nearly half of them -were 
never reported on by the Committee of Commerce and Manufactures/ 
There was not one of them successful, although the ruin suffered 
by some, and impending over others, of the petitioners, had every 
possible claim to prompt and effectual redress. On this treatment of 
constituents, no comment is necessary. 

T 2 



222 Projits of Cotton Manufactures, 

Second operation, ^^Four months* 
200 dollars purchase 4 bales, which produce Dolls. 

4,000 yards at 20 cents, .... 800 

Third ofieration. — Six months. 
800 dollars purchase 16 bales, which produce 

16,000 yards at 20 cents, - - - - 3,200 

Fourth operation ^^^Eight months. 
3,200 dollars purchase 64 bales, which produce 

64,000 yards at 20 cents, .... 12,800 

Fifth ofieration.'-^Ten months. 
12,800 dollars purchase 256 bales, which pro- 
duce 256,000 yards at 20 cents, - - 51,200 



Sixth ofieration.'-^Twelve months. 
5 1,200 dollars, purchase 1,024 bales, which pro- 
duce 1,024,000 yards at 20 cents, - - 204,800 



Seventh ofieration^-^Fourteen months* 
204,800 dollars purchase 4,096 bales, which pro- 
duce 4,096,000 yards at 20 cents, - - 819,200 

Eighth ofieration, '^Sixteen months, 
819,200 dollars purchase 16,384 bales, which 

produce 16,384,000 yards at 20 cents, - 3,276,800 

Ninth ofieration,''^ Eighteen months. 
3,276,800 dollars purchase 65,536 bales which 

produce 65,536,000 yards at 20 cents, - 13,107,200 

Tenth ofieration.^^^Twenty months, 
13,107,200 dollars purchase 262,144 bales, 
which produce 2 62, 144,000 yards at 20 cents, g 62,428,800 

This sum, at the present prices of our staples, would 
probably purchase -the whole of the exports of the United 
States. 

This statement affords a clew to the wealth, power, and 
resources of Great Britain — and to the impoverishmient of 
this country. 



Profits of Cotton Manufactures. 223 

We present the subject in another point of view:— 
We exported last year to Great Britain, bales 

of cotton 205,881 



Equal to lbs. 61,764,3©G 

Deduct for waste, 50 lbs. per bale, - - 10,294.050 



Pounds net, 51,470,250 



Producing, at 4 yards to the pound, - yards 205,88 1,000 



Which, at 20 cents per yard, amount to • 841,176,200 
Supposing we sold the whole of the raw cotton 

at 30 cents, it produced the United States 18,529,290 



Leaving a clear gain to Great Britain of - 22,646,9 la 

If the exports of cotton to that country this year 
are equal to tht- last, and average 20 cents 
per pound, it makes an addition to the British 
profit of ...... 6,167,430 

Total -.--.-. 28,823,340 



Every dollar of this sum might be saved to this country, 
by a proper tariff. 



NEW SERIES. 
No. IL 

Philadelfihia^ December 24, 1819. 
It is painful to us, to be obliged again to combat objec- 
tions which we regaixled as fully disproved in our fonner 
addresses, beyond the probability of a revival. In this opi- 
nion we were completely supported by hundreds of intel- 
ligeni citizens, whose views of the subject had on a fair 
examination undergone a total change, and wlio at present 
as strenuously advocate the policy of retaining our wealth 



224 Decefitious Statements, 

at home to support the Indus ly of our own citizens, as 
they fonneriy did that of squandtrhig it in Europe and 
the Eas^ Indies, to support the industry of foreign nations, 
under the idea of *^ letting trade regulate itself," which it 
has never done in any age or country. 

But hovvever painful this procedure may be, it is a duty. 
The persons opposed to our views, without replying to our 
arguments, far less refuting any of thenu repeat the hack- 
nied common places of free trade, taxing the many for the 
benefit of the few, impairing a^ revenue, &c. &c. Free 
trade with them means, in strict propriety, to remove the 
restrictions that favour our own citizens, while all other 
nations maintain rigorous restrictions in favour of their 
subjects. 

We therefore crave indulgence for any repetitions that 
may appear in this essay, as the inevitable consequence of 
the course pursued by the opposers of the system which 
we advocate. Whenever they advance new arguments, 
we shall meet them with new replies. To old arguments, 
ten times repeated, and as often refuted, we can only ad- 
vance repetitions. 

When we first began to address our fellow citizens, 
about nine months ago, on the distress and embarrassment 
so generally prevalent throughout the union, the existence 
of that distress and embarrassment was denied; endeavours 
were used to convince the public, that our statements on 
the subject were erroneous; that the country at large en- 
joyed a high degree of prosperity; and that whatever little 
pressure existed was confined to a few towns and cities 
where banks and over-trading had produced some ruin. It 
was unhesitatingly asserted, that the farmers and planters, 
the great body of the nation, had no reason to complain — 
and accordingly made no complaint; and that all the cla- 
inoyr arose from a few manufacturers, who were, to the 
whole nation, as a few stray sheep to an immense flock. 

These assertions although radically wrong, were made 
with such confidence, as to gain credence with those who 
did not look beyond the mere surface of things. Unfortu- 
nately for the country, as well as for the credit of those who 
who made them, their want of foundation is now so 
obvious and so palpable, as to admit of no denial Cala- 
mity has advanced upon us with such rapid strides, that 
whatever doubts may have been entertained heretofore, 
have now vanished. There is but one sentiment on the 



Oiir Situation at the close of the War. 225; 

subject. That the distress is more intense in some parts 
of the union, than in others, favoured by local circumsian- 
ces> is adiiiitted — but that it is felt every where, is equally 
clear. 

Would to heaven our descriptions had been unreal, and 
that we had been deceived. To none of our readers would 
the discovery of the error have been more agreeable than to 
ourselves. We present an outline of the leadhg features 
of our situation at the close of the war, and at present, 
which affords a most melancholy contrast, appalling to 
every friend not merely of this country, but of human hap- 
piness generally. 

Our Situation at the close of the War. \ 

1. Every man, woman, or child in the nation, able an3 
willing to work, could procure employment. 

2. We had an extensive and profitable cotton manufac- I 
ture, spread throughout the union, and producing above \ 
24.000,000 of dollars annually, which might, by proper en- 
couragement, have been extended to 50,000,000 in a few 
years. 

3. This manufkcture consumed above one-fourth part 
of our whole crop of cotton. 

4. We had a capital vested in merino sheep to the 
amount of one miilion of dollars. 

5. We possessed a valuable woollen manufacture, whicA* 
produced us annually clothing to the amount of nineteen 
millions of dollars — and which might have been extended 
before now to double the amount. 

6. Almost all of our manufacturing establishments were'^" 
fully and advantageously employed. 

7. Confidence between our citizens was gcr.eral. 

8. Our debts to Europe were fairly and hoLourably dis- 
charged. 

9. Little, if any of our public stock was held in that quar- 
ter of the globe. 

10. Money could be easily borrowed at legal interest. 

1 1. Debts were collected without difficulty. 

12. Our character, as a mercantile people, stood fair 
with the world. 

13. Every man who had capital, could find advantageous 
employment for it in regular business. 

14. The country was generally prosperous, except a few 
places which had suffered desolation during the war. 



2^6 
Our Present Situation^ 

i. Our profitable commerce nearly annihilated. 

2. Our shipping reduced in value one half. 

3. Of our merchants a considerable portion bankrupt, 
and many tottering on the verge of bankruptcy. The com- 
mercial capital of the country reduced, it is believed, seven- 
ty 'iiillions of dollars. 

4. Our manufacturing establishments in a great mea- 
sure suspended, and many of them falling to decay. 

5. Many of their proprietors ruined. 

6. Thousands of citizens unemployed throughout the 
United States. [About N, 000 in the city of Philadelphia 
have been deprived of employment.] 

7. Our circulating medium drawn away to the East In- 
dies and to Europe, to pay for articles which we could 
©urselves furnish, or which we do not want. 

8. A heavy annual tax incurred to Europe in the inte- 
rest payable on probably 20 or 25,000,0(^0 of dollars of go- 
Ternment and bank stock, likewise remitted in payment. 

9. Real estate every where fallen thirty, forty, or fifty 
per cent. 

10. Our great staples, cotton, flour, tobacco, 8cc. redu- 
^.^ced in price from thirty to for'y per cent. 

j^ 1 1. Our merino sheep, for want of protecting the wool* 
len manufacture, in a great measure destroyed, and those 
that remain not worth ten per cent of their cost. 

L-- 12. Large families of children become a burden to their 
parents, who are unable to devise suitable means of em- 
ployment for them. 

13. Numbers of our citizens, possessed of valuable ta- 
lents, and disposed to be useful, but unable to find employ- 
ment, are migrating to Caba, where, under a despotic go- 
vernment, among a population principally of slaves, and 
subject to the horrors of tht inquisition, they seek an asy- 
lum from the distress they suffer here!* 

* Emigration to Cuba, — " The schooner Three Sally's, captain 
Warner, sailed from this port on Sunday last, for Fernandina de 
Yuaga, a new port and settlement on the south side of Cuba, with 
101 passengers, principally respectable mechanics, and their fami- 
lies, and late residents of this city." — Philadelphia Daily Adverti- 
ser, Dec. 2, 1819. 

" In the schooner John Howe, lately sailed upwards of one hun- 
dred passengers for the new settlement of Fernandina, in Cuba." 
-"•Philadelphia Gazette* 



Our Present Situation. 

14. Hundreds of useful artisans and mechanics, who, al- 
lured by our form of government, migrated to our shores, 
are returned to their native countries, or gone to Nova 
Scoiia or Canada, broken hearted and with exhausted funds. f 

15. Men of capital are unable to find any profitable em- 
ployment for it in regular business. 

16. Citizens who own real estate to a great amount- 
have large debts due them-^and immense stocks of goods, 
cannot mortgage their real estate, dispose of their stocks 
but at extravagant sacrifices, nor collect their debts. 

17. Citizens possessed of great wealth, have it in their 
power to increase it immoderately, by purchasing the pro- 
perty of the distressed, sold at ruinous sacrifices by sheriffs, 
marshals, and otherwise — thus destroying the equality of 
our citizens, and aggrandizing the rich at the expense of 
the middle class of society. 

18. The interest of money extravagantly usurious. 

19. Distress and misery, to an extent not to be concei- 
ved but by those vvho have an opportunity of beholding 
them, spreading among the labouring class, in our towns 
and cities. 

20. Bankruptcy and poverty producing an alarming in- 
crease of demoralization and crime. 

21. The attachment to our government liable to be im- 
paired in the minds of those who are ruined by the policy 
it has pursued. 

22. After having prostrated our national manufactures, 
lest we should injure the revenue, the revenue itself fails, 
and we are likely to be obliged to recur to loans or direc| 
taxes to meet the exigencies of the government 

23. Numbers o^' banks in different parts of the union, 
deprived of their specie by the extravagant drains for Eu- 
rope and the East Indies, and obliged to stop payment. 

24. Legislatures driven, by the prevalence of distress, 
to the frightful measure of suspending the collection of 
debts. 

That this is an unexaggerated picture of the actual si- 
tuation of our country, is, alas! too true. It affords a proof 
that our sysiem has been radically unsound — and that a 
change is imperiously called for. Any change can scarcely 
fail to be beneficial. 

f ^'Liverpool, J^ov. 2, 1819.— The Ann, captain Crocker, frora 
New York, is now off this port, with upwards of one hundred re- 
turnod emigrants." 



Jt^rofihetic Warnings, 

These ruinous consequences were prophetically de- 
picted with * a pencil of light/ and also distii ciiy presented 
to the view of congress in their progress. Happy, thrice, 
happy would it have heen, had the warnings and heart- 
rending statements which that hod) received been duly at- 
tended to — What shoals and quicksands would our pros- 
perity have escaped! 

The committee of Commerce and Manufactures in 
1816 declared, that — 

" The situation of the manufacturing establishments is 
perilous. Some have decreased — and some have suspend- 
eti business. A liberal encourogemtnt will fiut them again 
into o/ieration. But should it be withheld, they will be pros- 
trated. Thousands will be I'cduced to want and wretchedness. 
jl cafiital of nearly sixty millions (jf dollars will become i?i^ 
active^ the greater part of which will be a dead loss to the 
manufacturers. Our improvidence may lead to fatal con- 
sequences.'* 

Again— 

"Can it be politic in any point of view, to make the 
United States dept^ndent on any nation for supfilies^ abso' 
lutely necessary for ease^ for comfort^ or accommodationP 

'* Will not the strengths the political energies of this nation 
be materially impaired at any lime, but fatally so in time of 
difficulty and distress, by such dependence? 

" Do not the suggestions of wisdom plainly show, that 
the security^ the peaccy and the happiness of this nation^ dC' 
pend on opening and enlarging all our resources^ and draw» 
ing from them whatever shall be required for public use or 
private convenience?^* 

The suffering citizens laid their calamitous situation 
before congress in the most eloquent appeals, but in vain. 
No part of the union suftered more than Pittsburg. From 
the address of that city we quote a single sentence — 

" The tide of importation hab inundated the country with 
foreign goods. Some of the most valuable and enterprising 
citizens have been subjiCted to enormous losses^ and others 
overwhelmed with bankruptcy and ruin. The pra^sure of 
war was less fatal to the hopes of e7iterprise and industry y 
than a general peace^ with the calamities arising from the 
present state of our foreign trade?^ 

Part of the long catalogue of ills, it was out of ou.r 
power to prevent; among the rest, the reduction of our 
commerce, and the consequent depreciation in the value of 



Inunense Transition, 229 

Qur shipping. The nations of Europe could not be expect- 
ed to allow us to continue the commerce that naturally be- 
longed to them, longer than suited their convenience. Nof 
couid we by any tneans have prevented the reduction of the 
price of our wheat, flour, 8cc. &c when a cessation of the 
destruction caused by war, and the return of so many of the 
soldiery to the labours of the field, not only increased the 
capacity of supply, but diminished the consumption of Eu- 
rope But a sound policy would have averted three-fourths 
of our sufferings, and mitigated the residue. It would have 
afforded ottier employment for our superfluous commercial 
capital; made a domestic market for our cotton; and fos- 
tered our woollen manufacture to an extent almost com- 
mensurate with our wants. 

We enjoyed for twenty years a very great proportion of 
the trade of the world, far beyond our due share — and, to 
use the words of an English statesman, were " hardly 
scratched by our war'* of two years and a half. We closed 
it in a most prosperous situation, calculated to excite the 
envy of our enemies, and the gratulations of our friends. 
All that was necessary to insure the permanence of our 
happiness and prosperity, was to protect our national indus- 
try, after the example of all the wise nations of Europe. 
We fatally abandoned it to a hopeless struggle with foreign 
rivalship. It sunk a victim in the unequal contest. And 
our melancholy example is added to those of Spain and 
Portugal to warn other nations against the rocks on which 
we have shipwrecked our happiness. By our system of 
buying goods where they could be had cheapest, support- 
ing foreign manufacturers, and consigning our own to ruin, 
we have, during a period of profound peace of nearly five 
years, not only lost ail the advantages acquired by our long- 
continued neutrality, but find ourselves in as bad a situation 
as when the wars of the French revolution began. 

The transition is immense and lamentable: and we are 
persuaded that, except in the case of Portugal at the com- 
mencement of the last century, there is no instance to be 
found in the annals of Europe for two hundred years, of so, 
precipitous a fall in so short a space of time, without war, 
famine, or pestilence. Spain, which exhibits the moulder- 
ing ruins of a mighty empire, fell, it is true, from a higher 
pinnacle to a lower abyss; but the descent required centu- 
ries of misrule, with bloody wars, and remorseless perse- 
cutions. 



230 Disastrous state of affairs. 

The source of the change is by some of our citizens 
sought for in the transition of the world from a state of war 
to a state of peace, which has produced distress, it is said, 
in most parts of Europe. This idea is erroneous. The 
distress is far from general. It prevails extensively, it i^ 
true, in Great Britain, where machinery, superseding so 
large a portion of the manual labour of the country, has 
driven a tenth part of the population to a dependence on 
the poor rates, and where the nation is borne down by an 
enormous debt, an expensive government, and grinding 
tythes and taxes. It would be lost labour to prove, what is 
obvious to the world, that there is no analogy between her 
case and ours. 

We have given a faithful picture of the disastrous situa- 
tion in which this great nation is placed by a mistaken po- 
licy. It now remains to trace the outlines of that policy—- 
the means by which the evils we suffer might have been 
averted — and the course to be pursued, in order to extri- 
cate ourselves from our embarrassments. 

We have bought and consumed more than we have sold. 
Our imports for five years have been above one hundred 
millions of dollars more than our exports. This solves the 
mystery. The distress and embarrassment arising from all 
the other sources, would have been but temporary. Bank- 
ruptcy and ruin tread on the heels of individuals whose ex- 
penses exceed their income. No law, human or divine, ex- 
empts nations from the same fate. Spain and Portugal, to 
which we have so often referred, are standing monuments 
of the soundness of the maxim, that even inexhaustible 
mines and rich colonies will not secure the prosperity or 
happiness of nations that are so misguided as to expose the 
productive industry of their people to destruction, by the 
overwhelming competition of foreigners. How much strong- 
er and more irresistibly does the argument apply to the 
United States, possessing neither mines nor colonies, and 
whose resources solely depend on the fruits of their indus- 
try! How carefully therefore should that industry be che- 
rished! 

It will appear in the sequel that our present calamitous 
situation might easily have been avoided, and the country 
raised to that high degree of prosperity, to which her ad- 
vantages of soil, climate, and water power, with the intel- 
ligence, enterprise, and industry of her citizens, give her so 
fair a claim. 



Im/iorts of the United States. 23:1 

The imports of the United States for the last five years, 
exclusive of what has been re-exported, have been about 
420,000,000 dollars, viz. 

1815 g 118,914,000 

1816 . - - . - - 60,569,000 

1817 - . - - - - 73,516,000 

1818 - 94,477,000 

l^\9 {'per estimate) - - - - 14,000,000 

g 421,476,000 
Our exports have fallen one hundred millions short of our 
imports. As this was a result that might easily have been, 
and indeed was foreseen, it ought to have been guarded 
against as far as legislation could afford a remedy. The 
remedy was to exclude, or reduce our consumption of, the 
fabrics of the old world, in due proportion to the diminu- 
tion of its demand for our staples. This was fatally ne- 
glected. 

It required but little penetration to see that our means 
of payment, were wholly inadequate to meet such enormous 
imports; that the country must be greatly impoverished by 
them; that its productive industry would be paralized; and 
that much misery must be the necessary consequence. All 
the sagacity of our statesmen ought to have been put into 
requisition, to avert the impending evils, and to steer our 
bark safe through the shoals and quicksands, by which she 
was menaced. Every month made appearances more and 
more portentous, and more strongly indicated the necessity 
of- adopting bold and decisive measures. Unhappily the 
views of most of our statesmen were almost wholly bound- 
ed by the security of the revenue! and many were only anx- 
ious to avoid" taxing the many for the benefit ofthefew!^^ 
These were the grand objects of solicitude, and outweighed 
all other considerations. They viewed with unconcern the 
inundation of foreign merchandize, which drained our coun- 
try of its wealth^ — ruined our manufacturers — and doomed 
our working people to idleness, to want, and too often to 
crimel The more foreign goods came in, the cheaper they 
were sold, and the higher the revenue rose! And this ap- 
peared to atone for all the disastrous consequences it pro- 
duced! 

On this point, it might be sufficient to reply with Alex- 
ander Hamilton— 



232 Sound Political 7naximsi^ 

" There is no truth that can be more firmly r0lied upon, 
than that the interests of the revenue arc promoted by what- 
ever firomotes an increase of national industry and wealth "* 

It requires but little reflection to perceive the cogency 
of this maxim. A prosperous people ^vill naturally indulge 
in luxuries, which are generally brought from foreign na- 
tions — and will bear high duties. A revenue resting on 
such a basis would ht far more likely to increase than to 
diminish. It cannot be doubted that the customs at present, 
considering the impoverishment of the country, and the low 
state of our credit abroad, aff*ord but a slender dependence 
for the treasury. The United States, if industry were duly 
protected, would be better able to yield a revenue of 40, 
000,000 of dollars per annum, than they can now raise 25, 
000,000. A prosperous nation does not feel the weight of 
taxation. A hearth tax of half a dollar each, is more op- 
pressive to a poor nation, than a window tax of an e(|ual 
sum for each pane of glass, would be to a prosperous one. 

The warning voice of the wise statesmen of this country 
as well as of Europe, which bore testimony against the po- 
licy we pursued, was totally disregarded. 

" It would be extending the freedom of trade far beyond 
its proper bounds, to admit all the productions of a nation 
which prohibits ours, or admits them under duties equivalent 
to a prohibition.'^* '\ 

" The substitution of foreign for domestic manufactures 
is a transfer to foreign nations of the advantages accruing 
from machinery in the modes in which it is capable of being 
employed with most ability and to the greatest extent,'^^\ 

" The establishment of manufactures is calculated not 
only to increase the general stock of useful and productive 
labour^ but even to improve the state of agriculture in par- 
ticular,^*\ 

" Considering a monopoly of th,e domestic market to its 
own manufactures as the reigning policy of manufacturing 
nations, a similar policy on the part of the United States, in 
every proper instance, is dictated, it might almost be said 
by the principles of distributive justice — certainly by the 
duty of securing to their own citizens a reciprocity ofadvan- 
tages^'X 

What admirable lessons! What sublime views! How la- 
mentable that they were entirely disregarded! Our mis- 

=- Hamilton's Report. f ChaptaL \ Hamilton's Repoiit. 



Ejcisting' 8 ta i € q/ affairs, 233 

guided policy is a century at least behind them. The plans 
of our statesmen unhappily did not extend so far. The hope 
of buyin.^ cheap goods from Hindostan and Europe — the 
dread of Impairing the revenue — and the desire of foster- 
ing a commerce, which was expiring beyond the power of 
resuscitation, produced a policy of which the fatal conse- 
quences will be long felt, not merely by the sufferers, but 
by the whole nation. 

Had our government prohibited some leading articles, 
which we could ourselves have supplied, such as all kinds 
of coarse cotton goods, some of the woollen, &c. Sec. and 
laid high additional duties on those we were obliged to re- 
ceive from foreign countries, our importations would pro- 
bably have been diminished one-fourth, without impairing 
the revenue — and the following salutary consequences would 
have resulted. 

1. There would have been probably 100,000,000 of dol- 
lars, less debt contracted to Europe. 

2. That amount would have been added to the stock of 
national wealth. 

3. Our whole population would have been maintained in 
profitable employment. 

4. The revenue would have been indemnified by the ad- 
vance of the duties upon those goods imported, for what it 
might have lost by the exclusion of the others. 

5. As the reduction of the revenue would have been pre- 
vented, we should not have a direct tax suspended over out 
heads. 

6. We should have paid for our importations by our ex- 
ports, and not been obliged to remit go-^ernment and bank 
stock in payment. 

7. Our commercial credit in Europe, which has received 
a deep stain, would have remained unimpaired. 

8. We should have consumed so large a proportion of 
our cotton, as would have prevented the ruinous reduction 
of price, and produced immense advantage to our planters. 

9. Our woollen manufacture would have insured a mar- 
ket for the wool of our Merinos, and prevented the destruc- 
tion of that valuable race of animals; to the great benefit of 
our farmers. 

10. Our banks would not have been drained of their spe- 
cie, and obliged to press on their debtors. 

1 1 . We should have escaped the state of impoverish- 

u2 



234 British fiolicy* 

ment, embarrassment and distress in which we find ourselves 
placed. 

12. The prosperity universally felt would have increased 
the attachment of our citizens to our form of government, 
and drawn the bands of union tighter. 

13. Our citizens would not seek an asylum in Cuba. 

14. State legislatures would not have had recourse to the 
desperate measure of suspending the collection of debts. 

15. Thousands of useful artists and manufacturers would 
have migrated to our country; and an incalculable amount 
of*' the manufacturing skill and capitaV* of foreign nations 
would have been ^' firomptly transferred to the United States j 
and incorfiorated into the domestic cafdtal of the union. ^* 



Although the millions of capital lost by this policy, can- 
not be regained, nor the thousands whom it has vitally in* 
jured or ruined be indemnified for their sufferings — yet in 
the midst of the gloom that surrounds us, there is matter 
for consolation, that congress have a remedy completely 
within their power. All that is necessary is to afford our 
manufacturing citizens a portion of such protection as Eng- 
land, France, Russia and Austria afford theirs. We should 
then reduce our wants within our means of payment. The 
whole face of affairs would at once be changed. Millions 
of dormant capital would be put into circulation. Our in- 
dustrious population would find immediate employment. 
Property of every kind would rise in value. Confidence 
would be restored. Prosperity and happiness would again 
visit us with *' healing on their wings, ^* 

Although we have already repeatedly stated in detail the 
protection afforded by those great nations to their manu- 
facturers, we deem it proper to present an outline of it here. 
" Great Britain prohibits, even from her own dependen- 
cies, calicoes, manufactures of gold, silver, or metal; laces, 
ribands, siik goods, &c. &:c. And her protecting duties are 
so high, as, in most cases, to be equivalent to prohibition. 
There are above sixty articles, including manufactures of 
brass, copper, carriages, thread stockings, clocks, &c. sub- 
ject to fifty-nine per cent.; china and earthenware, shawls, 

* This sound view is taken from the late report of the secretary of 
the treasury. It is deeply to be lamented that so obvious and impor- 
tant an idea does not appear to have ever heretofore influenced our 
councils. 



Russian and Austrian fiolicy, 235 

kc. pay seventy-nine; cottons, cotton stockings, caps, thread, 
and linen sails, pay eighty-five; glass manufactures gene- 
rally one hundred and fourteen; skins or furs, tanned, tawed 
or curried, and articles -made of leather, or whereof leather 
is the article of chief value, one hundred and forty-two per 
cent.* 

" So minute is her attention to this grand point, that li- 
nen, when chequered or striped, printed or stained, is sub- 
ject to one hundred and forty-two per cent, duty; but only 
to sixty-three when not chequered or striped. The object 
is to secure to her own subjects the profits of the staining 
iind printing,* 

" She expended fifteen hundred millions of pounds ster- 
ling to replace the Bourbon family on the thrones of France 
and Spain, and of course had high claims on the gratitude 
of both monarchs. Yet the paramount duty of justice to 
his subjects, gained the ascendency over gratitude to his 
friends, in the councils of Louis XVIII. One of the earli- 
est measures of his administration was the enactment of a 
tariff, whereby above two hundred different articles, includ- 
ing all the most important of the British manufactures, and, 
among the rest, muslins, cambrics, woollen cloths, all arti- 
cles made of leather, steel, iron, brass, tin, wood, bronze, 
&c. were totally prohibited."! 

" The prohibitory system of Russia, a country, like our 
own, with a vast territory and a very disproportionate popu- 
lation, is carried to an extent far beyond that of any other 
in the world. It embraces all the great leading articles of 
manulacture, as cotton, linen, leather, wool, wood, copper, 
iron, paper, silk, silver-plate, glass, and a vast variety of 
articles of minor importance.'^:}: 

" The importation of silk, cotton, and woollen manufac- 
tures, is forbidden in the whole extent of the Austrian do- 
minions, as it has hitherto been in the ancient Austrian states 
only."* 

Against the policy we advocate, of affording protection 
to those of our citizens engaged in manufactures, the lead- 
ing objections are— 

I. That it is unjust to tax the many for the benefit of 
the few. 

* See British tariff, passim. f See French Tariff. 
\ Rordansz's European Commerce, 54, 227. 



236 Protecting Duties. 

II. That high duties encourage smuggling. 

So much has been written against the protection of 
ihanufacturesj on the injustice of " taxing the many for the 
benefit of the few/' that a large portion of our citizens are 
persuaded, that the manufacturers alone are protected, — 
that this protection is absolutely gratuitous — and that nei- 
ther agriculture nor commerce have any reciprocal advan- 
tage. 

It is hardly possible to conceive of a much greater 
error. It is in fact the reverse of truth. 

We hope to prove- 
That the protection afforded to manufactures bears no 
proportion in its effect to that afforded to agriculture and 
commerce. 

To arrive at a correct conclusion, it is necessary to de- 
fine what is meant by the word fir o tec tion^ as here employ- 
ed. Otherwise we might spend our time and that of our 
readers to no purpose. 

By ^^ firotection^'^ then, we mean such a governmental 
regulation, by duties or prohibitions, as saves any class of 
our citizens, whether farmers, manufacturers, or merchants, 
from being undermined or ruined by foreign rivals. As we 
do not pretend to critical exactness, which cannot be deem- 
ed necessary, we trust this definition will be admitted, as 
sufficiently precise to answer our purpose. 

It is obvious, that in this view the word has reference not 
to the amount, but to the effect of the duty; for example, 
15 per cent, may exclude one rival article; while 35 would 
not another. The former, therefore, is far more complete 
protection than the latt«r. 

It may be necessary to exemplify this theory. Hemp is a 
very bulky article in proportion to its value. The freight is 
high, and amounts to about sixteen per cent. Fine cam- 
brics and muslins occupy but small space, and are not sub- 
ject to more than one per cent, freight. It is therefore ob- 
vious that a duty of five per cent, on hemp, and twenty per 
cent, on cambrics, would place the American farmer and 
manufacturer on precisely the same ground, so far as res- 
pects freight and duties; that is, they would have tweniy-one 
per cent, advantage over their foreign rivals. 

But another very important consideration remains. Arti- 
cles which foreign nations possess an almost unlimited ca- 
pacity, to produce, require stronger protection than those of 



Amount of hnfiortations. 25^ 

which the production is necessarily limited. Thus the ma- 
chinery of Great Britain affordinp; her a capacity to produce 
muslins or cambrics to an almost unlimited extent— and the 
production of hemp being incapable of that extension, a 
further increase of duty on muslins or cambrics appears 
necessary, to place the manufacturer on the same ground 
of security as the farmer Hence the duty ought to i)e form- 
ed on a compound ratio of the amount of freight and the 
difficulty or facility of production. 

We trust these premises are clear and irrefutable, ard 
that they cannot fail to dispel the clouds that have been 
spread on this subject. 

The great mass of manufactured articles imported into 
this country, are subject to duties ad valoreip. There are 
five different classes of those duties, seven and a half, fif- 
teen, twenty, twenty-five, and thirty per cent. The amount 
of the importations of all these descriptions for 1818, was 
58,795,574 dollars. There are, however, some manufactur- 
ed articles subject to specific duties. But the amount is 
trivial; as the duties on this description in 1 8 1 8, except those 
on teas, wines, molasses, spirits, sugar, coffee, and salt, 
were only 1,591,701 dollars; under which were included 
oils, cocoa, chocolate, almonds, currants, prunes, figs, rai- 
sons, cheese, tallow, mace, nutmegs, cloves, pepper, 
pimento, cassia, indigo, cotton, ochre, white and red lead, 
hemp, coal, fish. Sec. &c. When the duties on these is 
deducted from the above sum of 1,591,701 dollars, the 
manufactured articles on which the remainder is collected, 
will, as we said, appear quite trivial. 

The articles paying ad valorem duties, were divided as 
follows: — 

g Per cent. 

of the whole. 
2,387,693 a l^^per cent, equal to about - - - 4 

19,445,525 a 15 equal to - - - 33 

9,524,531 a 20 equal to - - 16 

24,804,188 a 25 equal to - - 42 

2,633,637 a 30 equal to - - - 4|. 

58,795,574 



We annex a statement of the chief articles subject to 
those several duties. 

* To all the ad valorem duties herein stated is to be added 10 per 
cent. Thus 15 per cent, is actually 16 1-2, &c. &c. 



238 



Ad valorem Duties^ 



TABLE I. 

Articles subject to 71 per cent, ad valorem.^ 



Articles composed wholly or 


Lace veils. 


chiefly of gold, silver, 


pearl 


Lace shawls, 


or precious stones, 




Lace shades, 


Embroidery, 




Pastework, 


Epaulets, 




Pearls, and other stones, set, 


Gold watches, 




Silver lace, 


Gold lace. 




Watches, and pans of watches 


Jewelry, 


TABLE n. 


of all kinds. 


Articles subject 


fo 15 per ceni 


I, ad valorem.^ 


Farming. 




Manufactured. 


Apricots, 




Bricks, 


Apples, 




Brass in sheets, 


Beans, 




Brazing copper. 


Barley, 




Bolting cloths. 


Boards, 




Combs, 


Buckwheat, 




Copper bottoms, 


Butter, 




Clocks, and parts thereof, 


Beef, 




Corks, 


Cider, 




Gold leaf. 


Feathers for beds. 




Hair powder 


Flour, 




Inkpowder 


Grapes, 




Linens, 


Hams, 




Lampblack, 


Hay, 




Maps and Charts, 


Honey, 




Manufactures of flax no^t 


Hair, 




enumerated, 


Indian corn, 




Paints, 


Linseed, 




Printed books, 


Malt, 




Pictures, 


Nuts, 




Prints, 


Onions, 




Paper toys, 


Oats, 




Paper snuff boxes^ 


Potatoes,] 




Paintings, 


Peny, 




Silks, 


Pearl Ashes, 




Slates, 


Pitch, 




Starch, 


Peas, 




Stuff shoes, 


Pork, 




Silk stockings, 


Pears, 




Sealing wax, 


Peaches, 




Thread stockings, 


Potashes, 




Tiles, 


Quiiis, 




Worsted shoes, &c. 


Rosin, 






Rice, 

Rye, 

Tobacco in the leaf, 

Tar, 

Turpentine, 














Wheat, &c. &c. 







Add ten per cent- as before 



^d valorem Duties, 239 

TABLE III. 

Articles subject to 20* per cent, ad valorem, wholly manuftictured. 

Buckles, Japanned wares, 

Buttons, Lead manufactures, 

Brass manufactures, Muskets, 

Brass wire, Printing types, 

Button moulds. Pottery, 

China ware, Pewter manufactures, 

Cannon, Pins, 

Cutlery, Plated ware. 

Cloth, hempen Steel manufactures, 

Cotton stockings. Stone ware, 

Earthen ware, Side arms, 

Fire arms, Sail cloth, 

Gilt wares, Tin manufactures, 

Glass, Wood manufactures. 

Iron manufactures. Woollen stockings. 

To a candid public, we submit these three tables for their 
most serious consideration. The deductions from them 
are of immense importance to the future prosperity and 
happiness of this country. We trust they will be found to 
prove that the prevailing opinions on the exclusive protec- 
tion of manufactures are destitute of foundation — and that, 
so far as these tables extend, the balance is most unequivo- 
cally in favour of agriculture, although agriculture itself is 
not sufficiently protected. Lives there a man who will not 
admit that 

Beef, Indian Corn, 

Pork, Flour, 

Hams, Wheat, 

Butter, Tar, 

are incomparably better protected at 1 5 per cent, than 

Clocks, Printed books. 

Gold leaf, Silk and thread stockings, 

Linens, Stuff or worsted shoes. 
Manufactures of flax, 

at the same rate? or than 

China ware. Plated ware, 

Cotton and woollen stockings, Printing types. 

Manufactures of steel. Sail cloth, &c. 

Pins, 
at 20? We submit the question to the most decided op- 
poser of manufactures in the country, and cannot for a mo- 
ment doubt the issue. It cannot be denied that hams, boards, 
Indian corn, tar, and turpentine are better protected by 15 
per cent, than buckles, buttons, or cotton stockings, would 
be at 40 or perhaps 50. 

* Add ten per cent, as before. 



240 



Protecting duties. 



The manufactured articles subject to 25 and 30 percent, 
reniain The former are confined to cotton and woollen 
goods, manufactures of copper, silver and plated sadlery, 
coach and harness furniture. 

Half of the articles subject to 30 per cent, duty, are un- 
important; do not interfere with our manufactures; and are 
not lo be taken into view — as 



Mustard, 

Olives, 

Ornaments for head dresses, 

Ferfumes, 

Pickles, 

Sal lad oil, 

Sticks for umbrellas, 

Sweetmeats of all kinds, 

Walking sticks, 

Washes, &c. &c. 



Artificial flowers, 

Bahams, 

Bristol stones, 

Cosmetics, 

Comfits, 

Crapes, 

Canes, 

Fans, 

Feathers, 

Mats of flags, or grass, 

Millinery, 

There are, however, some important articles included in 
this class; among which are manufactures of leather, hats, 
clothing ready made, carriages, cabinet wares, &c. But the 
amount of the whole class is insignificant, not four per cent, 
of the importations of the country for 1818, as may be seen 
above, p. 238. 

We will now compare the highest duties on productions 
of the soil and on manufactures. We select from the for- 
mer, four articles, cotton, coal, hemp, and cheese; and shall 
add manufactured tobacco and snuff, the duties on which 
are calculated to aid the planter; also, spirits, the duties on 
which are imposed to aid the farmer directly in the produc- 
tion of peach brandy, apple whiskey. Sec. and indirectly in 
the consumption of his grain. 



Liverpool coal, per bushel 
Bengal cotton, per lb. 
Russia hemp, per ton - 
Holland cheese, per lb. 
French cheese 
English cheese 
Manufactured tobacco - 
Snuff- - - - . 
Jamaica rum, per gallon 
Geneva - - - . 



Cost. 
\ Cts. 



13 
10 



114 



Duty. 
I Cts. 



30 



10 


9 


13 


9 


181 


9 


,0* 


10 


9,0 


12 


70 


48 


65 


45 



Per cent. 



38i_ 

30 ' 
26 
90 
70 
49 
100 
60 
68 
80 



Comfiarison* 
Per cent* 
Cotton manufactures* - - 25 Cotton, raw, 
Woollen manufactures - - 25 Hemp - - 

* Add ten per cent, as before. 



Per ctnU 
30 

26 



Extracts from the Tariff. 241 

Plated Sadlery - - - 25 Tobacco - - - 100 
Manufactures of leather - - 30 Snuff - - - • 60 
Hats - - - . 30 Coal - - - 38 1-i^ 

Carriages - - - 30 Cheese - - - 49,70,90 

Cabinet wares - - - 30 Rum - - - - 68 

Geneva - - - 80 

Three of the agricultural articles, which are raw mate- 
rials, claim particular attention, flax, cotton, and hemp, with 
the corresponding fabrics. 

Duty per cent. Duty per cent. 

Flax* - ... 15 Linen* ^ - 15 

Hemp i 26 Hempen cloth - 20 

Cotton - - 30 Cotton goods, (above 25 cents 

per square yard) - - 25 

Here we find raw materials subject to higher duties 
than the articles manufactured of them! A case that is pro- 
bably without a parallel in the annals of trade and com- 
merce! The general practice of the wisest nations of the 
old world, is, to discourage the exportation of raw materi- 
als; to admit them duty free, or at least under very light 
duties; and to burden the manufactured articles as high as 
they will bear. The whole of these regulations have two 
grand objects in view, of which a wise government will 
never lose sight — the protection of domestic industry, and 
the promotion of the national wealth, power, and resources. 

Another view of the subject. 

Cotton, we see, is subject to three cents per lb. duty. 
The freight is equal to the duty — amounting together to 60 
per cent. Whereas the duty on cottons (above 25 cents 
per square yard) is 25 per cent. — and freight about one 
per cent!! 

Wonderful contrast! — 

Freight and duty* Freight and duty. 

Per cent. Per cent. 

Raw cotton ... 60 Cotton manufacturesf - 26 

We are fully persuaded, that the tariff of no country, in 
the darkest ages of the world, presents such a fact as this, 
so admirably calculated to tear up industrv by the roots! 
It is a century at least behind the policy of Edward 111. and 
six behind the light of this age. That prince bestowed 
bounties, immunities, privileges and premiums for the en- 
couragement of the woollen manufacture, and prohibited 

* Add ten per cent as before. 

f Yet inanufav-turers are gravely reproached for their ingrati- 
tude for the protection they enjoy. 

X 



242 Protection of Commerce. 

the export of the raw material, and the importation of th6 
manufactured article! 

We will contrast this portion of our tariff, with corres- 
ponding parts of the tariff of France, England and Russia. 

French Tariff, 

Duty per cent. 
Flax .•*«.! Linen prohibited. 
Hemp ----- 1 Hempen cloth prohibited. 
Cotton ----- 1 Cotton goods prohibited. 

Cotton is admitted in Russia, dutyfree — ^but all kinds of 
firinted^ stained^ or painted cotton goods are wholly firohi» 
bited. 

Cotton pays only six per cent, duty in Great Britain, ac- 
cording to the latest regulations; but calicoes are wholly 
prohibited, and all kinds of cotton goods, which are admit- 
ted, are subject to 85 per cent. duty. 

It is hardly possible to conceive of a greater contrast 
than is here exhibited between our policy and that of those 
great nations, which, however, was the policy of Colbert, 
Sully, the Great Frederic, and all the other celebrated 
statesmen, who rank so high in history. We are in a di- 
lemma. Either we are wiser than all the practical states- 
men of Europe, or our system is radically wrong. If we 
" judge of the tree by its fruits," we may easily decide. Its 
results have been of the most destructive character. 

Here we close the subject as respects the comparative 
protection afforded to the productions of the earth, and to 
manufactures. We trust that every reader who has given it 
a fair consideration, will readily agree that the interests of 
agriculture have not been overlooked; that the prejudices 
that prevail on the subject of the extraordinary protection 
afforded to manufactures, are not only not true, but the re- 
verse of truth; and that a large portion of our manufactur- 
ing establishments, for want of adequate protection, are 
prostrate, and their proprietors ruined. 

Protection of Commerce. 
It now remains to ascertain whether the mercantile in- 
terest has experienced the fostering care of the government 
—and whether the merchants are justified in uniting in 
the everlasting clamour against the manufacturers for 
*« taxing the many for the benefit of the few." We hope 
to make it appear, that the policy of our government to- 
wards the commercial part of our citizens has been magnani- 



Protection of Commerce 243 

nious and liberal to the last degree, and that it has afforded 
them as complete protection as was in its power. Happy 
for this country would it have been, had the same liberal 
and national spirit presided over its councils so far as re- 
gards manufactures! Instead of the lamentable scene we 
now present to the world, we should exhibit as grand a 
picture of happiness and prosperity as has ever been wit- 
nessed. 

The policy of England, the wisest nation in the old world 
on the subject of trade and commerce, is not, we hope to 
make appear, superior to that of our government on this 
point. 

In a former address. No. 1 1, we enumerated sixteen acts, 
or parts of acts, passed for the especial protection of com- 
merce, out of a much larger number to be found in our 
statute books. Being limited for room, we shall refer to 
the above address, and shall here confine ourselves to four 
acts, which will be amply adequate to establish our posi- 
tion on this subject. 

The attention of congress was early alive to the inter- 
ests of the mercantile part of the community— and it has 
never ceased to watch over them with the most laudable 
solicitude. By the second act passed by the first congress, 
the China trade was at one stroke secured to our mer- 
chants, by a decisive difference in the duties on teas— viz. 





In American! 


In foreign 




vessels. 


vessels. 




Cents. 


Cents. 


Bohea, per lb. - 


6 


15 


Souchong and other black teas - 


10 


22 i 


On all Hyson teas - - - 


20 


45 i 


On all other green teas 


12 


27 ! 



There was, moreover, a discrimination of ten per cen{^, 
made by the same act in favour of American tonnage in the 
duties on imports. 

The third act had the same marked and decided charac- 
ter. The tonnage on foreign vessels was fixed at 50 cents 
— and on American only 6. But even this discrimination 
was not deemed sufficient; for the former were obliged to 
pay tonnage for every coasting voyage; whereas the latter 
paid but once a year. 

, " Our discriminations operated powerfully in favour of our shipping. Vessels 
not of the United States, of two hundred tons burden, on entering our ports, 
paid twenty pounds sterling tonnage duly; and for a cargo of the value of 
two thousand pounds sterling, they paid fifteen pounds sterling, extra duty, 
more than did the vessels of the United States, of the same tonnage, and la- 



244 



Protection of Commerce. 



den as aforesaid. These extra charges were sufficient to^ drive from our 
ports, the greatest proportion of the foreign tonnage. All foreign nations 
were affected by the system we had adopted. It seemed to operate like magic 
in favour of the ship owners of the United States The diminution of the fo- 
reign tonnage employed in our trade, was, with very few exceptions, rapid, 
regular, and permanent. In 1793, our tonnage exceeded that of every other 
nation, except one."* 

From these facts there is no appeal. They are conclu- 
sive, and set the question at rest for ever. The effect was 
to multiply the American shipping to an extent unparallel- 
ed in the history of commerce. The following table exhi- 
bits the results. 

TABLE 

Of the tonnage emfiloyed in the Coinmerce of this countrif 

for twentt/'two years. 





American vessels. 


Foreign vessels. 


1796 ' 


Coasting trade. 
196,423 


Foreign trade. 


Foreign trade. 


675,046 


49,960 


1797 


214,077 


608,708 


76,693 


1798 


227,343 


522,045 


88,568 


1799 


220,904 


626,945 


109,599 


1800 


245,295 


682,871 


122,403 


1801 


246,255 


849,302 


157,270 


1802 


260,543 


798,805 


145,519 


1803 


268,676 


787,424 


163,714 


1804 


286,840 


821,962 


122,141 


1805 


301,366 


922,298 


87,842 


1806 


309,977 


1,044,005 


90,984 


1807 


318,189 


1,089,876 


86,780 


1808 


387,684 


525,130 


47,674 


1809 


371,500 


603,931 


99,205 


1810 


371,114 


906,434 


80,316 


1811 


386,258 


948,247 


33,202 


1812 


443,180 


667,999 


47,098 


1813 


433,404 


237,348 


113,827 


1814 


425,713 


59,626 


48,301 


1815 


435,066 


706,463 


217,376 


1816 


479,979 


877,031 


259,017 


1817 


481,547 


780,136 


212,420 


7,310,333 


15,741,632 


2,459,909 



Total coasting trade, American tonnage 
Foreign trade do. 



American tonnage 

Foreign tonnage in Foreign trade 

Grand total 



tons 7,310,333 
15,741,632 



23,061,965 
2,459,909 

26,611,874 



*Seybert 294. 



Protection of Commerce. 245 

Thus it appears that the merchants have, from the 
commencement of the government, enjoyed an entire 
monopoly of the coasting trade, which employs above 28 
per cent, of the whole of the shipping of the country; and 
above 9o per cent, of all the foreign trade. 

The above two acts were the first passed by our govern- 
ment in favour of commerce. We will, as stated above, 
pass over the long list to be found scattered through our 
statute books, and confine ourselves to the two last passed 
with the same view — We mean the act on the subject of 
plaster of Paris, and that magnanimous national measure of 
prohibiting the entry into our ports, of vessels from those 
colonies of Great Britain, into whieh our vessels were pro- 
hibited to enter — an act of the most decisive and energetic 
character. 

Besides the preceding protection to commerce, which, by 
the exclusion of foreign competition, produces the effect so 
much inveighed against in the case of manufactures, of 
" tt^ing the many for the benefit of the few ^^^ that is, in 
plain English, of enhancing the price of freight, at the ex- 
pense of the whole nation, for the benefit of the merchants, 
there is another species of protection extended to com- 
merce, of a more costly character. It is comprised under 
four heads. Expenses incurred for— 

1. Foreign intercourse — 

2. Barbary powers — 

3. The navy — 

4. War. 

That the first and second items are chargeable wholly to 
commerce, will not be denied. Some question may arise 
respecting the third — but it is obvious, that for every other 
purpose than the protection of commerce, 100,000 dollars 
per annum would be adequate for the navy of the United 
States. The expenses for four entire years, 1791, 1792, 
1793, and 1794, were below 70,000 dollars. 

On the subject of the fourth item, there will be still more 
diversity of sentiment. It requires, however, but a mode- 
rate portion of candour to admit, that nine-tenths of all the 
difficulties we have had with foreign powers, have arisen 
wholly from commerce. From the wholesale depredations 
of 1793, down to the orders in council and the Berlin and 
Milan decrees, every page of our history bears this solemn 
truth in legible characters, that we should have steered 
our bark in peace through all the tremendous convulsive 

x2 



246 



Protection of Commerce., 



struggles of the wars arising from the French revolution, 
but for the collisions caused by our commerce. We state 
two facts within the knowledge of every man acquainted 
with our affairs for the last twenty- five years. When about 
three hundred of our vessels, engaged in the trade with 
the French colonies, were seized in 1793, we were in the 
most imminent danger of war — various retaliatory measures 
iirere proposed in congress, among which the sequestration 
of British debts stood conspicuous. Nothing saved the 
country from a recourse to arms at that time, but the in- 
terference of the president, and the mission of Mr. Jay to 
London. In 1805-6, the depredations were renewed with 
additional violence, and the merchants from Newburyport 
to Baltimore were most importunate in their requisitions 
on congress, for protection and redress, whence arose that 
series of restrictive measures which a few years afterwards 
eventuated in war. 

We will now state the expense incurred for the naval 
department, foreign intercourse, and Barbary powers, ior 
20 years — and for the military department for four, em- 
bracing the three years in which war raged and the suc- 
ceeding one. 



ms^s:^£^x!!vs^ 


]>^aval department. 


Foreign intercourse. 


Barbary powers. 


1796 


274,784 


109,739 


75,120 


1797 


382,631 


172,504 


390,284 


1798 


1,381,347 


242,711 


214,767 


1709 


2,858,081 


199,374 


72,000 


1800 


3,448,716 


185,145 


210,142 


1801 


2,111,424 


139,851 


155,285 


1802 


915,561 


416,253 


134,672 


1803 


1,215,230 , 


1,001,968 


108,866 


1804 


1,189,832 


1,129,591 


57,063 


1805 


1,597,500 


2,625,767 


142,259 


1806 


1,649,641 


1,613,922 


146,299 


1807 


1,722,054 


419,845 


157,980 


1808 


1,884,067 


214,233 


90,759 


1809 


1,427,758 


74,918 


91,387 


18i0 


1,654,244 


48,795 


32,571 


1811 


1,965,566 


181,746 


83,158 


1812 


3,969,365 


297,327 


60,376 


1813 


6,446,600 


153,791 


56,170 


1814 


7,311,290 


163,879 


13,300 
67,110 


1815 


8,660,000 


223,781 


$52,065,691* 


$9,615,140* 


$2,349,568* 




* 


Seybert, 713. 





Protection of Commerce. 



24% 



Expenses of the military department during the years 1812, 1813, 1814, 1815. 

1812 ----- 12,022,798 

1813 ----- 19,747,015 

1814 ----- 20,607,906 
1815 15,208,794 



67,486,513* 



Aggregate, 

Expense incurred in twenty years for the na?al department, 52,065,691 

Foreign intercourse ----- 9,615,140 

Barbaiy powers - - - - 2,349,568 

Military department, for four years - - - 67,486,513 

Total $131,516,912 

In order duly to appreciate the proportion these expen- 
ses bore to our commerce, we annex a statement of the 
exports from the United States for the same twenty years, 
from 1796 to 1815, inclusive. 







Domestic Exports. 


Foreign Exports. 


1796 


' 40,764,097 


26,300,000 




1797 - - - 


29,850,206 


27,000,000 




1798 


2,527,097 


33,000,000 




1799 , 


33,142,522 


45,523,000 




1800 


31,840,903 


39,130,877 




1801 - 


47,473,204 


46,642,721 




1802 


36,708,189 


35,774,971 




1803 - - - 


42,205,961 


13,594,072 




1804 


41,467,477 


36,231,597 




1805 - 


42,387,002 


53,179,019 




1806 


41,253,727 


60,283,236 




1807 


48,699,592 


59,643,558 




1808 


9,433,546 


52,997,414 




1809 - 


31,405,702 


20,797,531 




1810 


42,366,675 


24,391,295 




1811 - - - 


45,294,043 


16,022,790 




1812 


30,032,109 


8,495,127 




1813 - - - 


25,008,152 


2,847,845 




1814 


6,782,272 


145,169 




1815 - 


45,974,403 


6,583,350 






700,606,879 


568,583,572 



Domestic exports 

Foreign ------ 

Total exports - - - - - 

Expended for protection of commerce, as above stated 



700,606,879 
668,583,572 

1,268,190,451 

$131,516,912 



Seybert, 712. 



248 ~ Sound fiolicy of France. 

It therefore irresistibly follows, that the actual disburse- 
ments for the protection of commerce for twenty years, 
have been eleven per cent, of the whole amount of our ex- 
ports^ domestic and foreign — and nearly twenty per cent, 
of the former. And yet we repeat, the merchants unite in 
the cry against the expense incurred for the protection of 
manufactures! although the government from its first es- 
tablishment has never paid one dollar, as loan, premium, or 
bounty to encourage, foster, or promote that portion of the 
national industry employed in manufactures! 

Let it be observed that the manufacturers, while they 
have been so frequently the objects of jealousy with their 
fellow citizens, have had the magnanimity never to prefer 
a complaint against the protection afforded to either far- 
mers or merchants, or the enormous expense incurred in 
defence of the latter. Nor Would we wish it understood 
that we regard the fostering care bestowed on them as 
otherwise than the duty of the government. Our object is 
merely to bring the subject fairly before our fellow citizens, 
and to: prove that both agriculture and commerce are far 
more adequately protected than manufactures. 

It may be useful to compare our system oS.^^ purchasing 
nvhere goods can be had chea/iest^'' and not " taxing the 
many for the benefit of the few^^ with that pursued in 
France, and to cast a glance at their results. 

Mons. Chaptal, minister of the Interior, during the reign 
of Bonaparte, published, a few months since, a detailed and 
most exhilarating view of the affairs of France, and of the 
policy that has led to her present prosperity. The pro- 
duct of the manufactures of that country, in 1818, was 
1,820,000,000 francs, composed of the following items:—- 
Domestic raw materials ----- francs 416,000,000 

Foreign do. 186,000,000 

Labour 844,000,000 

Various expenses, as interest, firing, repairs, &c. - - 192,000,000 
Porfits of the manufacturer 182,000,000 

1,820,000,000 

Equal to about $360,000,000 

France waged the most sanguinary wars for above twen- 
ty years. She was afterwards crushed by rapacious and 
depredating armies — and subject to a military contribution 
of above 100,000,000 of dollars. Yet she has already re- 
covered from all her disasters, and is now the most prps- 



Sound Policy of Ft mice , 249 

perous nation in Europe. Should the mighty secret be 
asked by which this all-important change has been efft cted, 
it is reducible to a few words — she was not afraid of the 
ide-dl danger of " taxing the many for the benefit of the 
few?^ She protected the industry of her subjects, making 
a small temporary sacrifice for an immense permanent 
benefit. While our statesmen were calculating about sav- 
ing a quarter, or half, or three quarters of a dollar per 
yard, by buying goods in Europe and in the East Indies, 
she for a while bought at home at double price, in prefer- 
ence to purchasing cheap abroad. She trusted that com- 
petition would produce the effect it has ever produced, 
that is, to bring prices to a proper level. The maganimous 
policy succeeded — and now affords a rich harvest of pri- 
vate happiness and public prosperity. We have bought 
^heap abroad — and distress overspreads our land! She 
bought dear for a while at home, and is repaid ten fold for 
the temporary sacrifice! 

It is but just to state her policy in ChaptaPs own words; 
— We hope they will sink deep into the minds of the states- 
men and politicians of this country. 

*' Our casimers cost twenty-five francs per ell, to the 
manufacturer^ at the commencement of our operations. 
The English offered them at half price, to the consumer. 
Our cambrics and calicoes, ill manufactured, cost us seven 
to eight francs. The English delivered theirs at three. 

" Ought we, therefore, to have renounced this project of 
manufacturing conquest? No. It was our duly lo persist 
and improve. This therefore is the course we pursued. 
And we have arrived at such a degree of perfection, that 
our industry excites the jealousy of those from whom we 
have borrowed it. 

" If during twelve or fifteen years, in which we pursued 
our essays, our researches, our experiments, we had not 
excluded the competition of foreign rival articles by prohi- 
bitions^ I ask of the partisans of fifteen per cent, duty, what 
would have become of this admirable industry, which con- 
stitutes the ornament, the glory, and the riches of France?"* 

* " Nos casimirs coutoient 25fr. I'aune au fabricant, dans le 
principe; et les Anglois oifroient les ieurs au consomrrjateur, ^ moiti^ 
prix; les percalles, les calicots, mal fabriques, nous revenoient a 7 
4 8 fr. Taune; les Ang-lois les livroient i 3 fr. 

" Falloit-ill renoncer ^ ce prqjet de conquete maDufacturi^re? 
Nod, il falloit persister et se perfection ner. C'est aussi la znarche 



250 

Smuggling, 

While ruin was successively swallowing up various ma- 
nufactures, and reducing to bankruptcy their owners, who 
were shut out of the markets of foreign nations by the wis- 
dom of those nations — and deprived of their own by the 
want of protection, their prayers and supplications were 
met by a clamour against the danger of smuggling that 
would arise from high duties. On this, real or supposed 
danger, the changes have been rung from New Hampshire 
to Georgia, and from the Atlantic to the Mississippi. It 
has been regarded as a conclusive and unanswerable argu** 
ment, and as forming an insuperable bar against making 
such a radical change in the tariff as would afford protec- 
tion to the manufacturers, whatever might be their suffer- 
ings. 

An objection which is regarded as so powerful, and which 
closes our ears to the cries, and shuts our eyes against a 
view of the distresses of so large a body of our fellow citi- 
zens, ought to be founded on an impregnable basis — and 
demands the most rigorous scrutiny before it be admitted 
as orthodox. An error on such a point is liable to produce 
deleterious consequences. 

We shall therefore once more investigate the ground on 
which it rests. Reduced to plain English, it is — 

!• Smuggling is a dreadful and demoralizing evil that 
ought to be avoided. 

2. High duties encourage smuggling. 

3. Therefore high duties ought to be avoided. 

To render this syllogism applicable to the case in hand, 
two things are necessary to be proved. If either fail, it 
falls to the ground: — 

1. That the duties requested by, or necessary to afford 
adequate protection to, our manufacturers, would be so 
immoderately high as to encourage smuggling. 

qu'on a suivi^: et nous somrnes arrives a un tel degre de perfec- 
tion, que notre industrie excite aujourd'hui la jalousie de la nation 
qui nous Pa transmise. 

" Si, pendant douze k quinze ans qu'ont dur^ nos esais, nos 
recherches, nos tatonnemens, on n'avoit pas ecarte du concours, 
par la prohibition, les produits etrangers, je demande aux parti- 
sans des 15 pour cent, ce que seroit devenue cette belle industrie 
qui fait Pornement, la gloire et la richesse de la France.^" — De 
V Industrie Francoises torn. IT. />. 431, 



Smut(gling. 25 1 

2. That our duties, in general, are calculated on a mor 
derate scale, predicated on a dread of the danger of en- 
couraging^ smuggling by high duties. 
Neither of these positions is founded. 
We will specify a few out of a great variety of manufac- 
tures, which have been either wholly ruined, or greatly im* 
paired in their progress, since the peace, by the inundation 
of rival articles, and hope it will appear to our readers, that 
the duties might have been raised to double their present 
amount — so as to preserve the manufactories, without dan-^ 
ger of smuggling — and without impairing the revenue. 
Gold Leaf, Slates, 

Linens, Sealing wax, &c. &c. 

Manufactures of flax, 

are subject to fifteen per cent.— 



Manufactures of Steel, 


Earthen ware, 


Brass, 


Japanned ware, 


Glass, 


Pottery, 


Iron, 


Stone ware. 


Lead, 


Woollen stockings. 



are subject to twenty per cent. — And 

Fine cottons, and Woollens, 

are subject to twenty-five per cent. 

Of these manufactures, several, which, in consequence 
of the exclusion of foreign rivalship, were in a flourishing 
state during the war, have since been laid prostrate. A 
duty ot 30 per cent, on some, and 40 on others, would have 
effectually secured them. 

Now, we freely appeal to men of candour and fairness, 
whether those duties would have been more likely to pro- 
duce smuggling than the duties we have stated, on snufF, 
tobacco, rum or gin at sixty or eighty or one hundred per 
cent, t or those which we shall produce in the next table? 

Will it be asserted, that if pottery, for instance, had been 
subject to a duty ol 60 or 80 per cent, it would have been 
more likely to be smuggled than any of those articles? 
Surely not. The idea is inadmissible. 

On the second head, the objection still more completely 
falls to the ground. Our tariff imposes duties on various 
articles extravagantly high. — We have already stated the 
cases of cotton, cheescj manufactured tobacco, ssnuff, rum^ 
and Geneva. We proceed to wines, teas, and salt. 



is2 



Smuggling, 





Price.* 
cents. 


Duty. 

cents 
60 
60 


Duty 

per cent. 


Sheny wine, per gallon, 

Lisbon wine - • - - 


100 
125 


68 
48 


Imperial tea - - - 
Hyson - - - - - 
Youog Hyson - - - 
Hyson Skin - - • - 


65 
40 
40 
24 


50 
40 
40 
28 


78 
100 
100 
116 


Souchong - - ^ . 
Bohea - - - - - 


27 
13 


25 
12 


98 
90 


Salt, per bushel - - - 


16 


20 


L !'.?._j 



Thus it appears that there are no terrors felt on the sub- 
ject of smuggling, when those articles are in question 
which do not interfere with the national industry! On these 
50, 60, 70, 80, 90, and 125 per cent, are unhesitatingly im- 
posed. — But when those manufactures are to be dut'ed, 
of which we have the raw material to the utmost extent of 
our wants (as, for instance, cottons, and, with some quali- 
fication as to present supply, we might add woollens) wa- 
ter power t) manufacture them without limitation — ^and 
industrv and enterprise never exceeded in the world — then 
the appalling spectre of smuggling arises, at the mention 
of 35, 40, 45, or 50 per cent, to blunt tne feelings of our 
legislators — to ruin a large and valuable portion of our ci- 
tizens—to make us tributaries to all the nations of the civi- 
lized world, on whom our treasures are wantonly and prodi- 
gally lavished— and to tear up by the roots a large portion 
of the productive industry, the wealth, power, and resources 
of the nation!! 

To these facts we most earnestly invite the attention of 
those who have any thmg at stake on the welfare of their 
country. In five years, we repeat, without war, pestilence, 
or famine, we have fallen from a towering eminence into 
an abyss, where we find bankruptcy; character impaired at 
horn 3 and abroad; forced idleness, misery, and distress, 
among thousanris able and willing to work; demoralization; 
emigration of our citizens in quest of an assylum which 
their own country does not afford them; and finally legisla- 
tive fiusfiensions of payment. We believe the great mass 
of those evils due to the policy we have pursued, the anti- 
podes of that of all the wise nations of Europe — but the 
couiiterpart of that of Spain and Portugal. — Nothing can 
save us but a full and complete protection of the domestic 
industry, which we fervently pray, may take place without 

''' Cost at the places of shipment respectively. 



Situation of Philadelphia. 253 

delay, for the happiness of our citizens, and for the honour 
of our repubhcan torm of government. 

P. S. In order to afford our fellow citizens a fair view 
of the deleterious consequences of the policy we have pur- 
sued, on the welfare and happiness of this nation, we annex 
authentic documents of the calamitous situation of Phila- 
delphia and Pittsburg, which afford a practical commentary 
on the delusive system of '^ buying cheap, goods abroad " and 
unfeelingly consigning our fellow citizens to ruin, and our 
country to a premature decrepitude. The destruction haft 
been in about the same proportion throughout the state. 

( « Philadelfihia^ Oct, 2, 1819. 

" The committee appointed by a meeting of the citizens 
of the city and county of Philadelphia, held on the 21st 
August, at the county court house, to make inquiry into 
the situation of the manufactures of the city of Philadelphia 
and its vicinity, in 1814, 1816, and 1819, beg leave to re- 
port — 

*' That they have performed the duty assigned them 
with as much attention as in their power; and regret that 
notwithstanding all their diligence, ihey have been unable to 
procure the necessary information from more than thirty 
branches of manufactures, of which they annex the results 



254 



Situation of Philadelfihia. 



Branches 


No of hands 


Average value of their 


Value of goods ma-1 


of 
manufactures. 


employed . 


labour per week. 


nufactured per weekj 


1814|1816| 


1819 


1814 

$3 75 


1816 1819 
?^3 67 J4 65 


1814 5 1816 


1819 


Cotton 


1761 


2325 


149 


$ !27380 


% 


Hosieiy 


96 


48 


29 


451 


4 47 \ 


778j 382 


145 


Thread 


444 


191 


20 


4 24 


3 50 ! 3 ^\ 
8 00 ; 6 00 


26901 1188 


600 


Silver Plating 


114 


210 


30 


9 00 


3420I 3200 


1732 


Smithery 


852 


750 


149 


9 00 


8 00 j 6 00 116036:18500 


1676 


Coach making 


220 


185 


67 


9 00 


9 00 


8 00 5600 4625 


629 


Chemicals 


71 


52 


16 


6 63 


7 55 


6 44 


5479 


2755 




Hatting 


134 


172 


60 














Carving & Gild- 




















ing 


62 


121 


24 


7 50 


8 50 










Potteries 


132 


132 


27 


5 48 


5 48 


5 83 








Tobacco Pipes 


33 


33 


none 


4 17 


4 17 










Printing Ink 


5 


5 


1 


7 00 


7 00 


7 00 








Book Printing 


198 


241 


170 


7 70 


7 21 


5 83 








Type Foundery 


74 


90 


42 


4 35 


4 32 


4 46 






800 


Brass Foundery 


SfOO 


240 


80 


6 33 


6 00 


5 00 




2800 




Wire Factory 


60 


22 


6 


6 67 


7 00 


7 50 








Floor Cloth ma- 




















nufactory 


50 


30 


25 


6 00 


6 00 


4 50 








Woollen 


1310 


1226 


260 


3 12^ 
6 44 


3 12^; 3 121 
6 62 11154^ 








Iron Castings 


1093 


1152 


52 








Paper making, 










2 










95 vats 


950 


950 


175 


5 00 


5 00 


5 00 








Copper smith's 




















and tin ware 


77 


77 


35 


6 75 


5 76 


2 00 


2272 


2272 38125 


Gunsmithery 


154 


124 


93 


7 23 


3 75 ! 8 67 


2567 


2145 1759 


Cabinet making 


180 


250 


70 


7 00 


7 00 ' 7 00 






Brush making 


65 


112 


50 


6 00 


7 50 i 5 00 


1560 


2688il200 


PlaisterSc Stucco 


120 


150 


90 


8 00 


10 00 7 00 








Bricklaying 


250 


300 


150 


9 00 


10 00 ; 8 00 








Patent Lamp 










i 








making 


6 


5 


1 


7 50 


7 50 


7 00 








Morocco Lea- 




















ther, &c. 


68 


111 


84 


8 26 


7 66 


8 52 


2681 


6368|2648 | 


R«pe making 


110 


200 


100 


648 


7 50 i 5 52 








Paper hanging & 


















playing cards 


189 

9188 


168 
9672 


82 
2137 


2 70 


3 36 3 8 


1 








I 


; 





"The following is a list of the branches of business, on 
which we found it impracticable to procure the necessary 
information: 



Shotmakers 
Plumbers 
Coopew 

Umbrella makcri 
Bookbinders 
Sugar bakers 
Chocolate makers 



Stone cutters 

Glass manufacturers 

Brewers 

Tanners 

Curriers 

Dyers 

Brick makers 



Situation of Philadel/ihia. 255 

Snuff and tobacco manufacturers Chair makers 

Carpenters Glovers 

Painters and glaziers Embroiderers 

Manufacturers of gunpowder Calico printers 

Shoemakers Turners 

Engravers Wheelrights, &c. &c. 

" It is obvious tiiat these branches must have partaken 
of the general decay of business — but it is impossible to 
ascertain in what proportion. 

'' We do not pretend that the above statements are cri- 
tically exact. It is obvious, that it would be hardly possi- 
ble to render them so, unless they were collected officially 
by public authority. But from the characters of the citi- 
zens who have furnished our data, we can confidently assert, 
that if there be any errors, they are neither numerous nor 
important; and that any slight excess in some is amply 
counterbalanced by deficiencies in others; of the latter des- 
cription some have already fallen within our knowledge. 





Jlnalysis of the 


preceding table. 






Average of 
1814. and 1816. 


1819. 


Diminution. 


Persons employed 
Weekly wages 
Wages per annum 


9,425 

58,340 

$3,033,779 


2,137 

12,822 
666,744 


7,288 

45,518 

2,366,935 



" Thus in the article of wages alone, there is in thirty branches of manu- 
facture, an actual loss of 2,366,935 
" Supposing the materials only equal to the wages, 

they amount to 2,366,9^5 



" Annual amount of productive industiy smothered by 

our present system 4,733,870 

"In this city, and vicinity, there are, it appears, 7,288 
persons thrown idle. And it is far from unreasonable to 
presume, that on every person thus deprived of employ- 
ment, at least two other persons depend. Hence it follows 
that no less than 21,864 persons are bereft of maintenance 
in thirty branches of business, in one single district of no 
great extent, not forty miles in diameter. 

" The pecuniary loss arising from this state of things 
may be calculated with tolerable certainty. But who can 
^calculate the injuries of another description that flow from 
it? The demoralization that necessarily results from want 
of employment, and its attendant dissipation? The heart- 
rending pangs felt by parents, whose prospects of supporting 
their families are blighted and blasted? The numerous es- 



256 Situation of Philadelphia, 

timable females accustomed to earn a subsistence by spin- 
ning, and other employments adapted to their sex, and 
whose wants and distresses may force them to a life of 
guilt and wretchedness? The vice and immorality, to which 
children are exposed by a career of idleness? In a word, the 
flood of evils, moral and political, which are let loose on 
society, by the existing state of things? 

" It would far exceed the bounds of this report, to enter 
into details on those various branches of business. This 
must be left to the reflection of our citizens and of the le- 
gislature of the United States, who alone are competent 
to apply a remedy to the existing evils. But we cannot 
forbear casting a glance at one particular branch, in order 
to establish the impolicy of our system. 

" The basis of the paper manufacture is a raw material, 
completely worthless for any other purpose. All the pro- 
duce of it, therefore, is clear gain to the community, and a 
solid substantial addition to the wealth of the country. 
We therefore exhibit a comparative view of the state of 
this branch in 1816, and 1819. 

1816. 1819. Diminution. 

Workmen employed 950 175 775 

Annual wages 247,000 45,900 202,000 

Annual production 760,000 136,000 624,000 

Tons of rags worked up 2,600 472 ^ 2,128 

^* Thus in one single branch, of little comparative im- 
portance, an annual loss of 624,000 dollars is incurred in 
the vicinity of this city; and 775 persons are rendered des- 
titute of employment, many of them men and women with 
large families. This is independent of the sacrifice of the 
capital of the employers, which in many cases is reduced 
to one half of its former value. 

*' We beg leave to repeat, what we stated in our former 
report, that most of these manufactures are prostrated not 
for want of protecting duties, but in consequence of the 
general impoverishment of the country, arishig principally 
ifrom the want of protection to the great leading branches 
of cotton, wool, and iron. A large portion of our manu- 
factures, including the chief of those depending on manual 
labour, have succeeded completely; and it is a singular and 
striking fact, notwithstanding the high price of labour is 
so often urged against the encouragement, and against the 
chance of success of manufactures here, that we yield the 
palm chiefly in those branches depending on machinery, 
in which, from our numerous mill-seats, we have advan* 
tages beyond any nation in Europe." 



^%^ statement ofihe comparative extent and value of Ike Manufactures of Pitts- 
burg and vicinity in the years 1815 and 1819, Reported to a town meeting, 
Dec, 24. 1819. 





!I 


5*S 


5T 


5'S^ 




00 a. 


^»< 


00 O. 


Z.» £. 1 


MANUFACTORIES. 


m 




3 5 


9* S>o 




^2.3 


IS 


*£.£■ 


%^ 




^S 


S" '^ 


^S 


If 




s.^ 


il" 


-> 24 


n> ^ 


Steam Engine Factories - - ^ 


290 


300,000 


40,000 


Founderies and Iron casting -^ 


163 


190,000 


-. 40 


80,000 


Iron and Nail Factories - - > 


65 


241,200 


30 


40,500 


Blaclismiths and Whitesmiths - - 


90 


90,000 


39 


40,000 


Glass Manufactories and Glass Cut- 










ting* ~. 


169 


235,000 


40 


35,100 


Hat Manufactories - - - 


69 


122,000 


30 


50,200 


Woollen Factories and Hosiery 


63 


48,500 


16 


16,150 


Saddlers 


68 


90,100 


28 


36,000 


Breweries - - - - 


28 


91,050 


18 


35,000 


White and Red Lead Factories - 


25 


110,000 


9 


35,000 


Tobacconists - - - - 


48 


45,850 


27 


27,550 


Brass Founderies - - - 


35 


49,633 


12 


11,700 


Ropemaking - - - - 


18 


30,000 


15 


15,000 


Saddletree Factories - - - 


28 


29,900 


12 


14,000 


Tin Factories and Coppersmiths > 


100 


200,000 


40 


45,000 


Chair Factories and Cabinet Making 


66 


90,000 


40 


24,500 


Silverplating - - - - 


30 


32,460 


8 


8,500 


Cotton Factories - - - 


42 


42,000 








Plane Making - - - 


20 


25,000 


10 


9,500 


Wire Weaving - - - - 


10 


12,000 


7 


6,000 


Wire Making - - - 


8 


21,000 








Button Making - - - 


6 


6,250 


3 


2,100 


Umbrella Making - - - 


2 


1,600 








Piano Forte Making 


4 


2,000 


1 


700 


Taylors ----'• 


66 


65,000 


29 


28,600 


Shoemakers - - - - 


1 


125,500 


50 


49,000 


Patent Balances, Scales and Steel- 










yards - - . . 


10 


10,000 


4 


3,500 


Yellow Queensware - - - 


9 


10,000 





9 


Pipe Making - - - - 


3 


1,800 








Linen Factory - - - - 


20 


25,000 








Wagon Making and Wheelwrights 


40 


40,000 


20 


18,500 


Paper Making - - - - 


60 


40,000 


30 


30,000 


Auger Makers, Bellows Makers,' 










Brush Makers, Cotton Spinners, 










Weavers, Curriers, Cutlers, 










Locksmiths, Spinning Machine 
Makers,Tanners, Tallow Chand- 


175 


195^000 


90 


130,000 


lers, Pattern Makers, Silver- 










smiths, Gunsmiths, and Soap- 










boilers 


. 








> 1,960 


2,617,833 


672 


832,0001 


(Signed) 


GEOI 


IGE SUT' 


roN, 


) 



HENRY DOANE, S Committee. 
Pittsburg, December 24th, 1819. ROB PATTERSON, ) 
* On Flint Gla^s alone, the reduction has been $ 75,000. 
Y 2 



25 S Pittsburg memoriaL 

The following memorial, adopted at a late town meeting in 

Pittsburg, is now in extensive circulation in the western 

country. 
To the Senate aiid House of Representatives of the United 
States in Congress assembled. 

We, the people of the western counties of Pennsylvania, 
suffering under great and numerous evils, arising, as we 
believe, from the erroneous policy of the government in re- 
lation to domestic manufactures — ask leave to approach 
your honourable bodies, and solicit a redress of our grie- 
vances. Upon a subject already exhausted by discussion, 
any reasoning drawn from general principles is unnecessary. 
We need not now reiterate the arguments so often advan- 
ced by the friends of domestic manufactures, and which yet 
stand unanswered and unanswerable. Nor shall we now 
remind your honourable bodies, of the mournful anticipa- 
tions, which, in a great variety of ways, were brought be- 
fore congress at the time the present tariff of duties was 
established, and the next session afterwards. It is sufficient 
to say, that the predictions of those days are more than ve- 
rified; that the present actual distress far surpasses in depth 
and extent the forebodings of those who were then deemed 
the most visionary. 

To present to congress a faithful picture of the present 
state of the country would be an impracticable task. 

The sacrifice of estates, the ruin of families, and all the 
complicated miseries of private suffering, which pervade 
the country, exceed any powers of description. 

Agriculture is declining, and interior trade is nearly ex- 
tinguished. 

Foreign goods have banished the precious metals from 
the land; and domestic manufactures, the greatest resource 
of our wealth and prosperity, are in the last struggles of 
dissolution. 

Establishments which gave employment and sustenance 
to thousands, arc idle. 

An immense capital, invested in more auspicious days, 
has become perfectly dormant, and the whole country is 
overspread with despondency and gloom. 

In this state of general suffering, the eyes of the people 
are turned to the constitutional guardians of their welfare. 
We indulge the confident hope, that the wisdom and the 
justice of congress will be exerted to save the country. 

It is most obvious, that no temporising measures will 



Pittsburg memoriaL 259 

avail. The wants, the calamities of the people demand an 
interposition radical in its character, and vigorous in the 
means of its accomplishment. Every man of reflection 
sees and feels, that the excessive use of foreign goods has 
brought our country to the verge of destruction, and that 
nothing short of permanent and ample patronage to our own 
manufactures, can afford any relief. The fallacy of buying 
at the cheapest market no longer stands in our way: nor 
will congress be again alarmed with the danger of impos- 
ing regulations upon trade. We have practical lessons on 
these subjects, infinitely more instructive than the dreams 
of political economists. The cheapest market has already 
extracted the life blood of the country, and the want of re- 
gulations upon trade, has made us the tributaries of a for- 
eign people. 

Men whose fortunes are staked upon the ruin of manu- 
factures, have essayed to keep in repute the old illusion of 
a foreign market for the productions of agriculture, and 
have ascribed our embarrassments to the great number of 
ephemeral banks, and the inundation of spurious paper. 
Experience has tested this reasoning also, and fixed upon 
it the seal of refutation. 

We look in vain throughout the world for a market. 
Agricultural produce has no value but at home, and the 
drain of gold and silver has shaken the stability of the 
wealthiest banks in the union. 

All confidence is impaired, and distrust is becoming as 
rooted as it is universal. Still our foreign debts are un- 
paid, and their burden, stupendous in magnitude, hangs 
like the inextricable mill-stone about the people*s necks. 
To devise palliatives against impending ruin is worse than 
idle. When its cause stands in the clearest light, and is 
even admitted by many of the rankest foes of manufactures, 
does not every consideration that gives value to free gov- 
ernment, require its extirpation? 

Despotism itself is tender of social rights, and under it 
private property is generally sacred. Is a republican gov- 
ernment so dear to man for its name alone? Has it a fore- 
sight less keen, a patriotism less ardent, a vigor less prompt 
and efficacious than monarchy? 

In Great Britain, government is the ally of domestic in- 
dustry. A rivalship tending to prostrate manufactures, 
would be resisted by its whole power. Shall an American 
congress do less? 



^6^ Pittsburg metnoriaL 

We are not the enemies of commerce. We wish its pro- 
tection at every hazard. But we are not in the number of 
those who think that government was instituted to subserve 
the interests of commerce alone. The people of the Unit- 
ed States have other rights not less dear, and other inter- 
ests equally precious, wrhich fall within the scope of impar- 
tial legislation. And v^hiie commerce exacts its annual 
millions from the treasury, they ask, that their own manu- 
factures may not wither and perish through the cold ne- 
glect of their own government. 

We are no longer a neutral nation, busied in gathering 
the harvest of European conflicts. — The state of the world 
is changed, and our domestic policy must be adapted to the 
permanent relations of peace. 

The subject to which we have presumed to call the at- 
tention of congress, is worthy their earliest consideration. 
Clouds and darkness hang over the prosperity and the hopes 
of the country — the power of the national government is 
alone adequate to the crisis. Partial restrictions, or expe- 
dients calculated for a temporary relief, will but protract 
the mischief. While the luxuries of the Indies shall be 
burdened, as they ought to be, with accumulated duties; it 
is hoped that the arm of government will be outstretched in 
the general defence — that every species of manufacture, of 
which- the raw material is produced at home, will receive 
immediate, decided, and permanent protection. Those who 
would limit the care of government, to particular branches 
of manufactures, have taken a very imperfect survey of the 
wants and means of the country. We disdain all narrow 
views. We deprecate the sordid jealousies of sections and 
climates of the same nation. Reposing the highest confi- 
dence in the wisdom of congress, we ask them to protect 
the whole fieofile^ to foster every branch of the national in^ 
dustry, and especially to guard the infancy of our manufac- 
tures from the baneful competition of foreign nations. This, 
and this only will produce a substantial and permanent re- 
dress of the grievances that afflict our country. 

It has been often argued that the proposed system of do- 
mestic manufactures, would impair the resources of the 
treasury. What are its resources at the present moment! 
Commerce has already suffered an alarming decay. The 
peace and the rivalship oi Europe oppose eternal obstacles 
to its renovation. Under the present operations of trade, 
better times are hopeless, and the general pecuniary ex- 



Means of National Prosfierity, 2^4 

haustion will blast the revenue itself. How can a republi- 
can government be rich, while the people are poor? 



vi Sermon delivered at Litchfield^ on the day of the jinni" 
versary thanksgivings December 2, 1819. By Lyman 
Beecher^ pastor of the first church of Christ in Litchfield, 

EcCLESIASTES. V. 9. 

Moreover the profit of the earth is for alh the king him- 
self is served by the fi.eld. 

The most obvious truths are frequently the most over- 
looked. No fact is more manifest, than the dependence of 
society upon the labours of the husbandman; and no fact, 
of so much importance, is perhaps less realized. In an 
extended machinery where every movement obeys one 
mighty impulse, the reality of the power may be obvious, 
and the apprehension of it be prevented, by those very 
movements, which are the evidence of its energy. In 
like manner, the employments of men are sa various from 
the throne downward, and our eye is so filled with this va- 
riety, that agriculture, the spring of this extended action, 
is liable to be thrown into forgetfulness, by the abundant 
evidence of its power. But let the sun for one year with- 
hold his ordinary smiles, and the clouds their accustomed 
treasure, and the earth her increase, and the paralytic 
shock, extended to every limb of the body politic, will 
quickly indicate where is the seat of life, and what is the 
spring of motion. When the fields languish, no subsitute 
for their product can be found, and our dependence upon 
God and the husbandman is realized. 

Convened at this time, in accordance with the dictates of 
religion, the exhortation of the supreme executive of the 
state, and the immemorial usage of our fathers, lo render 
praise to God for the mercies of the past year, and associated 
in this employment with a greater portion of the nation than 
have ever at one time observed this delightful anniversary, 
I have thought that the means of national prosperity ^mi^hx 
be an appropriate subject of contemplation. 

The general nature of the subject will not, it is presum- 
ed, prevent our interest in it, when it is considered that the 
present is a period of great embarrassment, brought upon us 
in a time of peace and of great fruitfulness of the earth: 



2^62 Means of National Prosfierity, 

brought upon us of course by our own indiscretions, and 
demanding 'he efforts of the government and the families 
of the nation, to apply a remedy. 

An outline only can be given in the illustration of so ex- 
tensive a subject; but if that be correct, your own discre- 
tion may supply the filling up. Among the means of na- 
tional prosperity we mention, 

First — The encouragement^ and successful firosecution of 
agriculture. 

There is no wealth of nations which is not obtained from 
the earth; and no wealth yielded by the earth but as the con- 
sequence of cultivation. The curse of barrenness can 
neither be repealed nor mitigated but by the hand of in- 
dustry; while at her touch the earth opens her bosom and 
pours out her munificence. The indolent cannot prosper. 
Their affairs will rush into confusion, and end in naked- 
ness and shame. Inspiration has told us ages since what the 
providence of God has not to this day failed to verify: " The 
hand of the diligent shall bear rule; but the slothful shall be 
under tribute." ^' He beconieth poor that dealeth with a slack 
hand; but the hand of the diligent maketh rich." " The way 
of ihe slothful man is as an hedge of thorns;" he is always 
embarrassed in his affairs, and moves onward as if cutting 
his way at every step through an hedge of thorns. " He 
that is slothful in his work is brother to him that is a 
great waster." " The desire of the slothful killeth him, 
for his hand refuseth to labour,'* — his desire is abundance of 
idleness, and it prevents exertion and destroys him. 

^' The slothful man saith there is a lion without, I shall 
be slain in the street,''~The efforts of industry are as terri- 
fic to him as the thoughts of meeting a lion. " Slothful- 
ness casteth into a deep sleep the idle soul." " By much 
slothfulness the building decayeth, and through idleness of 
the hands the house droppeth through." ** Yet a little sleep, 
a little slumber, a little folding of the hands to sleep. So 
shall thy poverty come as one that travelleth, and thy want 
as an armed man.*' " The soul of the slothful desircth and 
hath nothing; but the soul of the diligent shall be fat." " The 
sluggard will not plough by reason of the cold — therefore 
shall he beg in harvest and have nothing." " I went by 
the field of the slothful, and by the vineyard of the man 
void of understanding — and lol it was all grown over with 
thorns, and nettles liad covered the face thereof, and 
the stone wall thereof was broken down," Did any of you 



Means of jYational Prosherity, 26 S 

ever behold such a farm? Never, in the hand of the dili- 
gent man; and never otherwise, in the hand of the sloth- 
ful. The passages recited disclose the invariable laws of 
Providence in respect to the consequences of industry and 
sloth. Forests will not fall, and harvests will not wave, 
without labour. The family composed of inefficient mem- 
bers cannot thrive, and the nation composed of such fami- 
lies must be tributary to those nations whose policy pro- 
tects and stimulates national industry. 

The product of agricukurai enterprise, remaining after 
the wants ol tne husbandman are supplied, is the sustenance 
and the means of wealth to that whole portion of society de- 
voted lo other employments. If the husbandman has nothing 
to spare, by whom shall the professiotial man be fed? What raw 
material shall the arUzan manufacture? Or what product 
of industry shall iht merchant barter? Cut the sinews of 
agricultural enterprise, and reduce the ambition of the 
husbandman to the simple supply of his own wants, and 
you consign to famine every professional man, stop the 
movement of every machine, silence the hum ot business 
in cities, furl every sail opened to the favouring gale, 
and recall from the ocean every ship, to rot in ignoble in- 
dolence beside the dock. The surplus product of the 
farm is the spring of universal activity, without which ci- 
vilized society would fall back upon barbarism. 

Agriculture may be encouraged, by awarding honour to 
the employment, in accordance with its utility; by associa- 
tions and premiums for the collection and dissemmation of 
agricultural knowledge; and by the excitement ol a spirit 
of improvement in all kinds of husbandry; by ihe iniprove- 
ment of roads, the construction of canals, and multiplica- 
tion of the various facilities of inland navigation; and by 
wise acts of legislation, calculated to secure the husband- 
man a steady market and a fair price. 

With respect to honour, as an encouragement to indus- 
try, 1 intend not merely verbal applause: much less of- 
fering incense to pride By honour rendered to the ag- 
riculturist, I intend, that practical estimation which gives 
to him his relative place and weight in society, according to 
his intelligence, his virtues, and his usefulness. 

That employment which God assigned to man in a state 
of innocency, and re-enjoined upon him after his exile ti t.m 
Eden, and the commencement of the work of salvation, 
which is so congenial to health, courage, strength of body, 



264 Means of JVational Prosfierity, 

vigour of tiiteliect, patriotism, piety, morals, domestic en- 
joyment, and national wealth, ought not to be in equity, 
and will not be in policy, regarded as second in respectabi- 
lity to any employment whatever. Much less can it be re- 
garded as a vulgar or mean employment. 

Slaves may toil at the crack of the whip, and tenants in 
despotic countries may receive with gratitude from the 
landlord the privilege of ignoble industry. But freemen, 
the enlightened, independent owners of the soil, will not 
cultivate the earth in disgrace. That portion of the popu- 
lation best qualified, by vigour of intellect and capacity of 
knowledge, to guide the process of national agriculture, 
will escape from it to other employments more honoured. 
The consequence will bfe, that these will be overstocked, 
and that agriculture will languish, both for want of hands 
to till the earth, and for being thrown into the hands of 
the least intelligent and vigorous class of the community. 
I intend that honour, then, which leaves the way open to 
the farmer, to the best society and to the highest pub- 
lic honours of the nation; not without appropriate qualifica- 
tions* merely because he is a farmer, but unobstructed, 
whenever qualified, by any relative disgrace attached to 
the employment. I intend that estimation of the agri- 
culturist, which shall illustrate the proverb, " Seest thou 
a man diligent in business; ne shall stand before kings; he 
shall not stand before mean men.'' 

To supersede the necessity of repetition, I would here 
observe, that the honour due to the husbandman should be 
awarded upon the same terms to the mechanic and manu- 
facturer, and to that entire class of the community who 
sustain their families and bless their country by manual 
labour. That nation cannot be prosperous and free, whose 
labouring population are consigned to relative ignominy. 
The hard hand of labour must not be the token of disgrace, 
but the badge of honour.— The Romans prospered while 
toil was honourable, and were enslaved only when the 
sword and sceptre fell into the hands of the effeminate. 
Let tbe road to honour and influence be open alike to all 
classes of society, and the competition be that only of in- 
tellect, knowledge, enterprise, and virtue, while ignorance, 
indolence, and immorality constitute the only impediment to 
public favour; and the heart of national industry vyrill be 
cheerful, and tiie arm of national industry will be strong, 
and the consequence will be, contented families, and na- 



Means of Kational Prosperity. 265 

tional wealth. — We shall have no mobs of discontented la- 
bourers to annoy us — and no standing armies to protect and 
enslave us. 

Agricultural societies bring together the respectable 
agriculturists of a district, give them a place in the public 
eye, and induce the respectable characters of the other 
departments of society to pay to the husbandman their tri- 
bute of respect. They tend also to increase judicious ex- 
periments, to quicken the eye of observation, to collect and 
disseminate the scattered results of individual experience, 
as well as to afford that excitement to industry, which 
honour and profit fail not to afford. Those countries of 
Europe, which have carried their improvements in agri- 
culture to the highest state of perfection, have resorted to 
such associations, and experienced their benign effect. 

The improvement of roads shortens often the distance 
to market, increases the amount transported, diminishes the 
muscular toil, and other wear and tear, of transportation, 
while it increases the value of the surplus produce, and di- 
minishes the price of imported articles. Those, therefore, 
who improve the highways of their country, stand high on 
the list of national benefactors. That enterprise especial- 
ly should be honoured with public approbation, which con- 
nects the profit of the present generation, with the comfort 
and advantages of ages to come. The Appian Way, paved 
by the Censor, whose name it bears, remains in many parts 
entire to this day, after the tread of more than two thou- 
sand years; — and there are bridges which have witnessed 
for ages the descending flood, and borne across them the 
labours of industry. 

Canals, connecting rivers and lakes with the ocean, break 
down the distance of three or four hundred miles land trans- 
portation, bring the market to the farmer's door, and save 
millions annually, as the increased reward of industry, and 
as capital for more extended enterprise. 

By the application of steam to the navigation of rivers, 
the most rapid currents are overcome, and the same bark 
that bore down tht flood the abundance of harvest, brings 
back the reward augmented by the cheapness of the trans- 
portation, and the rapidity of the return. 

1 have mentioned a steady market, and a fair profit, as 
among the encourageme?\ts to be afforded to agriciilture. 
No human skill can indeed control the el« iiu;nts, o : . ;^u- 
late the seasons, so as to secure the equable iVuitfuincss of 

z 



266 Means of National Prosperity, 

the earth, in this or other climes; or so control the family 
of nations as to prevent the fluctuations of demand and 
price, occasioned by the interchange of peace and war. But 
much mav be done, by a wise policy, to check these fluc- 
tuations of the market, and especially to withhold them 
from extremes, which are destructive to national industry. 
No calamity is greater than a capricious market, baffling 
the sober extended calculations of industry, and converting 
the husbandmen ot a nation into a body of speculators. — 
Tempting at one time, by high prices, to adventurous pur- 
chases and lavish family expenses, and then by the glut of 
the market and the fail of produce, dashing the hopes of 
thousands of families, and rearing upon their ruins a monied 
aristocracy. A steady market, and a fair profit, for the pro- 
duct of the field, is among the greatest national blessings, 
and noblest objects of national policy. Like the steady at- 
traction of the sun, it keeps up the motion of surrounding 
bodies, and like his light, diffuses cheerfulness and activity 
through all the works of God. With these remarks in view, 
I am prepared to say, 

Secondly — That the firotection and encouragement of 
manufactures is essential to national prosperity. 

Manufacturing establishments, by the introducdon of ma- 
chinery and the division of labour, save time, and give us the 
consequences, while they save the sustenance and wages of 
increased population. They afford employment also to 
classes of the community which would otherwise be idle, 
or less usefully employed; call into action the diversity of 
talents with which God has endowed men, and lay open to 
the active mind of enterprise a greater choice of employ- 
ment, and more powerful excitements to industry. Bui the 
vital utility of manufactures consists in their subserviency 
to agriculture, by affording to the husbandman a near and 
steady home market, and by diminishing the competition of 
exported produce in foreign markets, increasing the demand 
and the price. It gives him the advantage of two maikets 
instead of one. — The home market a steady one, and the 
foreign market less fluctuating and more productive than if 
glutted by the entn^e surplus product of a great agricultu- 
ral nation. In the mean time, instead of quickening the 
industry and augmenting the resources of other nationh, we 
stimulate the mdubtry and augment the capital of oui own 
nation. We secure the entire fast capital of the manufac- 



Means of J\lational Prosfierity, 2^ 

turer, and all the circulating medium, necessary to keep 
his machines in motion, and to speed the plough, beside 
the whole annual profit of manufacturing the raw material. 
A single fact will make the subject plain. In England the 
annual proceeds of her manufactures of cotton, woollen, 
linen and leather, amount to 85,000,000/. sterling. The cost 
of the raw materia' is 22,000,000/. sterling, and the gain in 
value, by manufacturing the raw material, is 63,000,0. )0/. 
sterling. Now suppose that England could acquire from 
her own territory this whole raw material; would it be her 
wisdom to neglect her own agriculturist, and send this 
32,000,00(>/. sterling abroad, to stimulate the agriculture of 
other nations? — Or having on hand the raw material, will 
she send them three thousand miles across the ocean, and 
pay for the transportation and re-transportation; and 63,000, 
000/. sterling beside for the manufacture, and drain herself 
to bankruptcy of her circulating medium, to pay the annual 
debt? Could England at this rate have sustained her navy 
upon every wave, and stood collected in her strength against 
the assault of the civilized world, and at length have sub- 
sidized one half of it to fight her battles, and conquer for 
her universal peace? England better understands the way 
to wealth. By protecting her agriculture, commerce, and 
manufactures, she has laid under contribution the world 
around her, and made herself mistress of nations. National 
industry is national wealth. That policy which secures pro- 
ductive employment to the greatest portion of the popula- 
tion of a nation, consults her highest prosperity. But this 
can be accomplished so effectually, by no means, as by 
making the manufacturers of the nation the customers of 
the farmer, and the farmers the customers of the manufac- 
turer. If we would be independent in reality, of other na- 
tions, we must encourage agriculture, by the steady demand 
of a home market, and secure within ourselves the capital 
which results from the manufacture of our own raw mate- 
rials. The foreign market is always precarious and par- 
tial from the vicissitudes of peace and war, plenty and 
want, as well as from restrictions upon imports endlessly 
varied by nations to protect from foreign competition the 
industry of their own subjects. In this manner, foreign na- 
tions exert an efficient legislation over our substance, and 
raise or sink the value of our property, often from fifteen 
to fifty per cent. Such a state of uncertainty, and subjec- 
tion tQ foreign caprice^no nation ought to endure. In time 



268 Means of National Prosfierity, 

of war, if we depend on foreign markets, our produce is 
often excluded from its accustomed market, and our supply 
of imports, made necessary by habit, comes to us, at enhanc- 
ed prices, and finds us with our produce rotting upon our 
hands, and without the means of purchase. 

But the most fatal evil of dependence on foreign manu- 
factures and foreign markets is, the temptation to overtra- 
ding, and the drain of specie from the country, to pay the 
balance of our imports above our exports. A state of things 
more ruinous than war; and which at this moment is filling 
the land with bankruptcies and distress, beyond the calami- 
ties of any war in which we have been engaged. 

A civilized nation cannot conduct its business by barter, 
-.-There must exist a circulating medium, the representa- 
tive of property, to a sufficient extent to answer the purpo- 
ses of the exchange of property. But where, by the im- 
portation of foreign manufactures, a debt is contracted 
abroad, to a greater amount than the surplus of raw mate- 
rials will pay for, the difference must be paid in specie. 
This will occasion annually a diminution of the solid cir- 
culating medium, and this, an increase of paper credit, as 
extensive, and for as long a time as the folly of the borrow- 
er and the capital of the banks will permit. This abundance 
of paper currency depreciates the support of all who live 
upon a specific monied income, tempts to adventurous spec- 
ulations in trade, and to indiscreet expenses in the family, 
while, by the smiling aspect of seeming prosperity, it hides 
from the thoughtless multitude the day of destruction. — 
For the banks, at length, alarmed at the disappearance of 
specie, which the adverse balance of trade has borne to 
other lands, and at the extent of credit to which the desire 
of gain has tempted them, retrench at once their discounts, 
and call upon their customers to pay their debts. These, 
the venders of foreign manufactures over the face of the 
nation, call upon the consumers to pay their debts. But 
the paper medium is retrenched, and the solid medium of 
trade is gone, and the payment in money cannot be made-— 
and in lands and other kinds of capital it cannot be made but 
at a sacrifice of one half and two thirds of the real value. 
And now commences a scene of failure and fraud, and sa- 
crifice of property, of blasted hopes and family distress, of 
national embarrassment and stagnation of business, which 
beggars description. This evil is radical in the system of 
hiring other nations to manufacture for us; for as long as 



Means of National ProsfierUy. 26^ 

2^,000,000/ sterling of raw material costs 63,000,000/ manu- 
factured and we have only the price of our raw materials 
to pay the hire of foreign workmen, to whatever extent we 
trade, a monied capital must leave the country to pay the 
adverse balance. A steady stream of money, entering the 
country at one end, would wind its way through it, and find 
its way out of it, in spite of standing armies to prevent. 
Whereas, if our wants are supplied by our own manufac- 
turers, though we should over-trade, the debt is contracted 
among ourselves, and the representative of property is at 
hand, to facilitate the sale of solid capital at a fair price; 
and then the only evil will be, that they who live beyond 
their income must part with their capital: and, if they will 
not consent to retrench their expenses, must go down to 
poverty. But no such earthquake as now rocks the nation, 
and throws in many places the income and capital of the 
farmer, merchant, and manufacturer, into one common heap 
of ruin, can possibly exist in a time of peace and of prolific 
agricultural enterprise. — For though we are in debt, our 
distress is not occasioned by want of capital enough to pay 
our debts, but by such a want of circulating medium, as 
that fast property cannot be sold but at a destructive sacri- 
fice. The recurrence of such a state of things, manufac- 
turing establishments in our own country would to a great 
extent prevent, and no other remedy would seem to be 
adequate and permanent. 

To say that families must be more industrious, and live 
within their income, is good advice, which I intend to in- 
culcate; but to expect that the families of a nation will do 
this, in the presence of a market stocked with cheap foreign 
merchandize, and so limit by their discretion the national 
consumption, as to prevent the balance of trade against us, 
and the drain of specie to pay it, is to dispense with our 
knowledge of human nature, and build castles for national 
security upon the air. The same families, when the smart- 
ing of their folly has passed away, will repeat their folly; 
and other families, that every year come upon the stage, 
will tread heedlessly on, in the footsteps of their predeces- 
sors. 

If there ever was a subject which demanded govern- 
mental wisdom to prevent the evils of individual indiscre- 
tion, amounting to national calamity, it would seem to be 
that of limiting the national consumption of foreign manu- 
factures, by fostering our own, thus preventing the adverse 



270 Means of National Prosfierity, 

balance of trade, and securing the steady presence of a 
circulating medium; adequate to the exigencies of nation- 
al enterprise. 

But the only adequate encouragement to manufactures, 
and safeguard against periodical embarrassments, would 
seem to be the protection of manufactures, by such duties 
on imported fabrics as shall exclude the great capitalists 
of Europe from a destructive competition with our infant 
establishments. 

The voluntary preference given to domestic manufac- 
tures by patriotic associations and individuals, though ho- 
nourable and desirable, can never be made sufficiently uni- 
versal to prevent the inundation of the market from abroad, 
or sufficiently inflexible and enduring to resist the temp- 
tations to cupidity, where policy makes temporary sacrifi- 
ces to undersell, with the view of remuneration, when our 
establishments are in the dust. 

None of the great manufacturing establishments of Eu- 
rope have arisen without governmental protection, from the 
effects of foreign competition; nor with all their experience, 
strength of capital, capacity of credit, and extent of cus- 
tom, dare they expose them, even now, to foreign compe- 
tition. They stand as the apple of the eye, environed by 
prohibitory and protecting acts of legislation. But if these 
immense establishments, in the maturity of age, and sus- 
tained by such capitals, cannot stand before competition, 
bow shall our establishments rise from infancy to manhood, 
in the face of such gigantic opposition. 

Is the demoralizing influence of manufacturing establish- 
ments feared? A statistical account of pauperism and crimes, 
in three counties of England, most decidedly agricultural, 
and three the most decidedly manufacturing, furnished by 
Colquhoun, decides, that in the three manufacturing coun- 
ties, the paupers are eight in an hundred, in the agricultu- 
ral about fourteen in an hundred, and that in the manufac- 
turing counties there is one criminal to every twenty-five 
hundred, and in the agricultural, one to every sixteen hun- 
dred; completely overturning the received opinion concern- 
ing the immoral tendencies of manufacturing establish- 
ments, as drawn from the experience of England. But if 
in England their effect were peculiarly adverse to moral- 
ity, it would not follow that in this country their effect 
would be the same. No reasoning is more conclusive than 
that which includes, as its premises, matters of fact, and 
yet none through inadvertence is more liable to fallacy; fr)r 



Means of JVational Prosfierity, 274 

to be valid, the same causes must be attended by the same 
circumstances, to justify the conclusion that they will pro- 
duce the same effects. England, stocked by a dense po- 
pulation, and destitute of adequate agricultural territory, 
and manufacturing for herself and half the world beside, 
employs in manufacturing establishments a much greater 
proportion of her population, than we for our own supply 
should need to employ; and these, too, are thrown together in 
compact masses; while ours, invited by favourable stations, 
the presence of raw materials, and a market, will be extend- 
ed through the nation. The weight of our population will 
always be agricultural, and our manufacturers, intermingled 
with agriculturists, will not assume the specific character, 
or contract the vices of a dense population, devoted to manu- 
facturing employments. By intermarriage, also, with other 
classes of society, and by enjoying with them the same 
rights of suffrage, and means of mental improvement, and 
moral instruction, they will constitute a vigorous, useful, 
and honourable portion of the great family. But the deci- 
ded answer to this objection is, that a capricious foreign 
market, the glut of foreign merchandize, and the balancer 
of trade against us, and the drain of specie to pay that ba- 
lance, exert upon the nation an influence superlatively de- 
moralizing. 

Where at the present moment is public confidence at 
home or abroad? Amid our wide-spread bankruptcies, 
what temptations to fraud, speculation, swindling, confla- 
gration, theft, robbery, and murder, exerting a more des- 
tructive influence upon national morality, in one year, than 
ages of successful manufacturing industry! 

Is the tax feared, which the domestic manufacturer would 
impose, if favoured by a monopoly of the home market? 

That monopoly, if enjoyed, is granted by the suffrage of 
a thousand consumers to one manufacturer. If he abuses 
the privilege, and practises extortion, the same suffrage, 
that excluded foreign competition, can let it in upon him, 
and so certainly will do it, that he must be more than co- 
vetous to afford the provocation — he must be insane. But 
the entire monopoly of the home niarket is not to be desi- 
red or expected. The existing power of capital and of ma- 
chinery is not equal to the national demand. The encour- 
agement to be desired, is that which shall rescue from ruin, 
and put into lucrative motion, existing establishments, and 
so guarantee the fostering hand of government, as shall en- 
courage such a gradual investment of capital and extension 



272 Meatis of National Frosfierity. 

of machinery, as shall meet ultimately the exigencies of the 
nation. 

I& it still apprehended that even such partial protection, 
as would secure the increase and ultimate establishment of 
manufactures, will raise the price of manufactured articles? 

This effect can be but momentary. The rapid extension 
of manufacturing establishments, to meet the demands of 
the nation, would soon throw into the home market such a 
supply, as that the competition for sale would reduce do- 
mestic products to a fair price. This is the effect in En- 
gland, where the monopoly of the home market is entire. 
In no nation are domestic manufactures offered cheaper. 

This is now the effect, in our own country, of those minor 
branches of manufacture, which have escaped the jealousy 
and competition of foreign capitalists, until they have come 
into a quiet monopoly of the home market. But do the 
manufacturers of such articles practise extortion? They 
supply the market on as favourable terms as foreign manu- 
facturers would do. Granting, then, a momentary rise of 
manufactured articles, in consequence of protecting duties, 
this would be compensated to the nation collectively, by a 
better home market for agricultural produce, and by ex- 
empting us from the exorbitant war price of foreign mer- 
chandize, as often as wars shall embarrass our intercourse 
with Europe. But is a great question of national policy to 
be decided, by the narrow calculations of covetousness? — 
or on the broad basis of its own merits, as it shall affect 
permanently the solid interests of the nation? The policy 
of government ought to be' prospective, and every genera- 
tion ought to live, in part at least, for the benefit of those 
who shall come after it. The generations who have pre- 
ceded us, in clearing the soil, forming roads, and founding 
governments, colleges, and schools, have sustained an am- 
ple taxation for our benefit — and at the point of the bayonet, 
and by a copious shedding of their blood, have conducted to 
us the stream of national prosperity. Shall we arrest this 
noble stream on its way downward to other ages? or refuse 
to cast into it a tributary drop, which our avaricious thirst 
cannot draw back before it leaves our own horizon? If ma- 
nufactures are naturally constituent parts of national indus- 
try, and essential to the perfection of national prosperity, a 
wise government will protect them with intlexibie decision; 
for the point is settled, that without governnn^ental protec- 
tion they cannot prosper. 



Means ofKational Frosfierity, 27S 

Will the hisi^her price of labour in our own country ren- 
der it impossible for our manufacturers ever to afford us 
their merchandize as cheap as it can be introduced from 
abroad? That inequality may be more than balanced by a 
more extensive use of labour-saving machinery, than con- 
sists with European policy; by the expense saved in the 
transportation and re-transportation of the raw material and 
manufactured product, and by the higher taxation which 
the European capitalist is obliged to pay on his capital and 
income. But beside this, it is a fact that those domestic 
manufactures, which have gotten possession of the market, 
are those which depend most on manual labour, and yet are 
sold as cheap as imported articles of the same kmd. 

Is the diminution of the national revenue feared as the 
consequence of such duties upon foreign imports, as shall 
protect domestic manufactures? 

If manufacturing establishments are sources of national 
wealth, their gradual introduction cannot so impair the rev- 
enue, as to forbid their protection. It is a calamity, that so 
great a portion of our national revenue should be the sport 
of winds and waves, and dependent on the caprice of other 
nations, and gone the moment we most need it. A partial 
substitute would be desirable. And when a sufficient power 
of manufacturing capital is accumulated in our country, that 
may easily make up the desideratum of impost. The manu- 
facitirers of England more than refund the impost lost by 
their protection. They are her tax-gatherers, by which the 
world around her is laid under contribution, and her bound- 
Ijess resources created. 

Is the occupancy of our new lands, and the encourage- 
ment of agriculture thought by any to be more desirable 
than the introduction of manufacturing establishments? 

The rapidity of our emigrations, and extension of our ag- 
ricultural territory, is itself a national evil, demanding a re- 
medy, instead of an increase. 

The prosperity of a nation depends on the moral qualities 
of its population, the vigor of its institutions, the relative 
proportions of its materials, and the compactness of its or- 
ganization, by means of which, one heart may beat the pulse 
of life to every extremity, and one arm extend protection 
and control to every member. But such a state of society 
cannot be created by the fever of emigration, which inflicts 
on the older settlements the debility of consumption, and 
extends to the new ones the bones and sinews only of socie- 



274 Means of National Prosfieriiy^, 

ty, without flesh and skin to cover them. As fast as we ca» 
extend the institutions of civilized society, so fast it may be 
safe to extend our borders; but to do it beyond this, createa 
Rational debility, instead of strength. This nation, so ex- 
tensive in territory, so powerful in resources, so ener^ejetic 
in enterprise, so high minded in independence, cannot be 
held together and governed by force merely. Ties of blood 
and kindred, institutions and interests, must lend their amal- 
gamating influence. But these ties, by rapid emigrations, 
are weakened, and strengthened only by the more slow and 
retj^ular march of well organized society. Had this nation 
been peopled at first by adventurers who rushed upon our 
shores in quest of land and agriculture, leaving schools and 
religious institutions to lag after them, as they might vol- 
unteer their aid, and find their way, we had scarcely been 
rescued from barbarism. And even now, if we push pre- 
maturely a vast population into distant wilds, in a state of 
half formed society, we shall, ere we are aware of it, create 
a nation for our neighbour and rival, fierce, heady, high- 
minded, to teach us our folly, by eternal wars, and a pro- 
tracted frontier of desolation and blood. When the calamity 
of unprotected manufactures shall have driven off* our po- 
pulation so rapidly and so far, as to have broken the alliance 
of kindred sympathies, and institutions, and interests, our 
folly will have produced its results without a remedy. 

The true policy of the nation would seem to be, to occu- 
py our vacant lands at home, by a regular encouragement 
of industry, and a regular growth of all the constituent parts 
of society. Thus to augment our disposable capital, secure 
the presence of a circulating medium, and such a steady de- 
mand at home, for the product of the field, as may consist 
with a regular course of national industry. And as to the 
extension of our borders, this may be done as the surplus 
population of the old settlements shall demand, and with 
such rapidity only, as that the hand of charity, the favour of 
government, and the exertions of the emigrants themselves, 
shall enable them to carry with them the elements of a good 
state of society. Such an occupancy of our vacant lands, 
manufactures will not prevent, but will greatly favour. The 
political health, and cheerfulness, and capital of the older 
states, will enable them to extend the helping hand of cha- 
rity to their brethren who emigrate; and their aid, and the 
sameness it will give to their habits and institutions, with 
those of the land of their nativity, will render that land still 



Means of National Prosfierity, 27 B^ 

dear to them, and bind the extremities to the heart, by 
joints and bands which no ordinary convulsion will burst 
asunder. 

But dispensing with all this calculation, what is to be 
gair»ed by the extension of agricultural territory, without 
manufacturing -establishments? Only the same evils ex- 
tended to the wilderness subdued, which drove our hardy 
population into it. The more you extend agriculture with- 
out manufactures, the more you increase your debt abroad, 
by the consumption of foreign merchandize, and sink the 
value of your exports, by the increasing surplus of the 
farm, which every year holds increased competition in for- 
eign markets. You may as well recomnicnd to the lunatic 
tormented by his shadow, to go back^ to escape its perser u- 
tion, as to recommend emigration as a remedy for the evil 
of dependence on foreign merchandize and foreign markets. 
So long as we purchase abroad more tran our surplus pro- 
due^ m raw materials will pay for, we must make up the 
deficiency in specie, and that wiil create want of capiial, 
which will Clippie great undertakings. And when banks, 
to parry the evil, have augmented it by a credit, dangerous 
to their existence, and are compelled to collect their debts, 
then will commence again and again, ten times in a century, 
a scene of embarrassment and bankruptcy, which will shake 
the nation to its centre, and render it forever feeble and de- 
pendent, however extensive its territory, or copious its re- 
sources of soil or men. 

Thirdly. — The existence and encouragement of commerce 
is required as a means of national prosperity. 

The industry of a nation of agriculturists and manufac- 
turers, will support itself, and produce a surplus lor expor- 
tation. The power of capital and of machinery, adequate 
to the supply of the nation, will no more stop at the line of 
domestic supply, than the agriculturist will limit his exer- 
tions to the supply of his own family. But to keep the 
plough and the loom in motion, this surplus product must 
find a demand in some foreign market; and fails, of course, 
into the hands of the merchant, whose employment leads 
him to understand the wants of nations, and like the wind, 
to supply the vacuum by pouring in the superabundance of 
his own country. By this means, we collect the rich pro- 
ducts of other climes, in exchange for our own, and keep 
in constant vigor tne spring of national industry. Man, in- 
dolent by nature, needs a stimulus to industry, more power- 



276 Means of JVational Pros fierity 

ful than the supply of his own wants, to put into steady re- 
quisition ali his powers. This stimulus, commerce affords, 
by laying open the prospect of indefinite £;;ain, in the dispo- 
sal of the surplus produce of labour. It is this sine;Ie ex- 
citement, apphed by means of commerce, that keeps awake 
and puts in requisition the energies of the world. Subtract 
it, and soon a scanty supply for domestic use would be rais- 
ed, and indolence, and profligacy, and barbarism would en- 
sue. This braneh of national enterprise, both as an encour- 
agement to agriculture and as a means of national revenue, 
has experienced, from the beginning, the fostering care of 
the government, and will doubtless continue to experience 
that protection and favour, which its importance demands. 

Fourthly. — Literary institutions^ and scientijic men^ are 
essential to national prosperity. 

The effect of science, upon the best interests of a commu- 
nity, is not so universally appreciated, or so easily illustrat- 
ed to popular apprehension, as the effect of agriculture, 
consmerce, and manufactures, partly because its tendencies 
are not as obvious, and partly because its effects are not so 
imviicdiate or so embodied in any one great result. 

The influence of science is rather, like the light of hea- 
ven, a cneering, ail pervading influence; or, like the puri- 
fied atmosphere, difl^"using, imperceptibly, health and vigor, 
or, like the gentle dew, descending in silent munificence 
upon the abodes of men. There are objects of vital conse- 
quence to nations, beside agriculture, the arts, and com- 
merce, to which those devoted to these employments can- 
not attend, and which, upon the principles of the division of 
labour, must be committed to other hands. 

7^/ie common school education of a nation is of immense 
importance. But literary institutions are the fountains whence 
the streams of kn^iwledge descend through the higher 
schools, to those which bless every town and village. Li- 
terary men, mingled in due proportion with other members 
of tne community, are the natural guardians of national edu- 
cation, whose influence, in legislation and in their respec- 
tive local spheres, is the leaven that leavens the whole 
lump. Without colleges, the branches of English educa- 
tion, obtained in academies, and the higher order of com- 
mon schools* would soon cease, for want of competent in- 
structors. Tlie elevation which these give to common 
school educauon would fail; and national education would 
fall into the hands of men less and Ig^ qualified to enligh- 



Means of National Prosfierity* 277 

ten the minds of freemen, until darkness, visible, would rest 
upon the land. A great proportion of all the graduates of our 
colleges devote themselves, one year at least, to the instruc- 
tion of youth. How powerful and important must this con- 
stant impulse of our colleges be, in the great work of na- 
tional education! 

The health of a nation is an object of immense magnitude* 
An enlightened practice in the healing art is like the bra- 
zen serpent lifted up, among the expiring Israelites, while 
ignorance and rashness, which always exist in partnership, 
are like the fiery flying serpent, let loose to sting and de- 
stroy. This vital interest of a community can be safely 
committed only to men of enlightened minds, expanded by 
reading, disciplined by study, and conversant with the laws 
of the animal system and the power of medicine. 

The framing' of laws, io favour the successful movements 
of national industry, in the accumulation and preservation 
of property, is a subject of great intricacy and difficulty^ 
demanding the attention of an order of men, whose sole 
employment it shall be, to stand upon an eminence, and 
survey at one view the complex movements of national la- 
bour, and the relation of one nation with another, and with 
the world; and to provide protection and encouragement to 
the busy millions, whose employment precludes such com- 
prehensive views and mature coimsels. A single impolitic 
law may be more disastrous to national industry, than a long 
war. A single article in a treaty of England with Portugal 
blasted forever her extended manufactures of woollen, dried 
up an important stream of national wealth, and rendered 
her, ever since, tributary to the power that overreached her, 
in negociation. 

l^he intelligent and imfiartial administration of justice is 
of immeasurable importance to a nation. Nothing cah'^e 
more fatal to public industry, than insecurity of property. — 
The fairest and most fertile portions of the earth, by the 
insecurity of property, are turned into barrenness. In Egypt, 
Greece, and Palestine, because of the oppressor, the fig 
tree has ceased to blossom, and fruit to be found on the 
vines; the labour of the olive has failed, and the fields yield 
no meat; the flock is cut off" from the fold, and there is no 
herd in the stall. 

Nothing can guard against such insecurity of property, 
but equitable laws, faithfully administered l)y judges learn- 
ed in the law, and the aid of advocates, enhgiitened, and 

Aa. 



2TB Means of JS/ational Froa/ierity, 

above chicanery. The decisions of English and Americari 
jurists exert every momenta powerful and benign influence 
upon almost half the world — an influence, not confined to 
the immediate effect of their decisions, but, by the operaiion 
of general principles, extending security to the whole 
aniount possessed by nations. 

In what nation did even agriculture itself arrive at its 
best estate, without the cooperation of scientific men, in 
the invention or improvement of implements, or in the con- 
ducting of experiments, in reference to soils, manures, and 
the management of flocks and herds? In what nation did 
the mechanic arts ever flourish, or commerce and naviga- 
tion prosper, but as science lit her lamp, and led the way? 
What land did civil liberty ever protect and cheer, upon 
which the sun of science did not shed his beams; and where 
did the church of God ever arise, and shine, fair as the 
moon, clear as the sun, and terrible as an army witli ban- 
ners, where science did not lend her aid to explain and en- 
force the reasonable service of God? 

Subtract from the agricuUuialits, the mechanic, and ma- 
nufacturer, the merchant, and professional man, the illumi- 
nation which science has shed upon his path, and the busi- 
ness of the civilized world must stop. 

The extermination of science, by the incursion of the 
northern barbarians, brought upon the Roman empire the 
dark ages of superstition; as the revival of letters, which 
preceded the reformation, brought the nations back to day, 
and produced, by the blessing of heaven, all the civil and 
religious liberty, which at this moment inhabits the earth. 

The national prosperity, resulting from an enlightened 
jurisprudence, is millions to one of the expense incurred in 
the support of colleges for the education of civilians. The 
single discovery of Jenner, and consequent expulsion of the 
small-pox ultimately from the family of man, will leave to 
the world, in life and active labour, more than all the ex- 
penses of all the colleges on the globe. The machine of 
Whitney, (an alumnus of Yale College,) for cleaning cot- 
ton, brings to our doors every yard of that fabric at a re- 
duced price, and saves annually more to the natif^n than all 
the expenses of Yale College, from its first foundation to 
this day. 

All the important concerns of society, described under 
this head, are, by common suff^rage, consigned to men, who 
have been qualified, directly or indirectly, by the efficacy 



Means of J/ational Prosfierity. 279 

of our literary institutions. Let me not, on this subject, 
hovv^ ver, be misunderstood, as I have been heretofore. I do 
not say or believe, that no man can be qualified for useful- 
ness in the learned professions, but by a public educationv — 
My meaning, is, that literary institutions are the means, with* 
out tvhich^ the facilities of a private education would not 
exist, adequate to the exigencies of the nation. Our ances- 
tors were wise on this subject, and laid the foundations of 
colleges contemporaneously, almost, with the foundations of 
their own dwellings. — And the legislature of this nation, 
guided by a policy that demands our confidence and grati- 
tude, have made ample reservations of land, in territories 
yet to be inhabited, for the encouragement of colleges and 
schools, 

Vm2,\\y-^ The institutions of the Christia?i religion ^XQ an 
important means of national prosperity. 

Intellect, power, and wealth are not happiness, but alike 
the means of happiness or misery, as they are wisely im- 
proved or are perverted. Their destination depends upon 
the heart, upon the national will. But this, depraved as 
man is, no laws of men have been able to with Hold, from 
deeds of destruction, where ample resources have furnished 
the means of dissipation. The history of nations is a re- 
cord of enterprise and wealth, of luxury, dissipation, and 
death. There is no safe way of raising a nation to vt^ealth 
and power, but, at the same time that you make it great, to 
make it good. It is God only, speaking to the heart by his 
word, institutions, and Spirit, that can cause the sun of na- 
tional prosperity to stand still at its meridian height. /Abun- 
dance of wealth, in the hands of an irreligious nation, is the 
sword of suicide in the hands of a madman. No flood of 
wealth can equal the power of dissipation to scatter. No 
vigor of constitution can resist the poison of sin, and no 
policy evade those judgments, by which God, as the moral 
governor of nations, avenges his abused goodness. If 
the culture of the earth, then, be important, how much 
more important is that culture of the heart, upon which 
the correct disposal of the whole product of industry de- 
pends? Is the breed of animals worthy of attention^ how 
much more worthy of attention is the breed of men? Are 
commerce and manufactures sources of national wealth? — 
alas, where the national heart is neglected, they pour their 
ample treasure into a bag with holes * And what is nation- 

* Haggaii. 6. 



280 Means of National ProBfierity, 

al intellect, however improved, perverted by a heart des- 
perately wicked, and abandoned to its own lusts? National 
wealth, without national morality, is ruin. But by what 
means more appropriate can that morality be secured, than 
by those institutions, which the wisdom and benevolence of 
God have provided for that purpose? What should prevent 
legislators from favouring the institutions of religion, as a 
means of national prosperity? May not the fear of God be 
promoted by legislators, without superstition? and may not 
his institutions be honoured without persecution or fanati- 
cism? 

Give to the institutions of religion their place in that 
system which God has ordained, to make nations great, and 
they will be the power of God and the wisdom of God, for 
national prosperity. They will rid us from strange children, 
whose mouth speaketh vanity, and their right hand is a 
right hand of falsehood. Our sons will be as plants grown 
up in their youth, and our daughters as corner stones po- 
lished after the similitude of a palace. — Our garners will be 
full, including all manner of store, our sheep will bring 
forth by thousands and ten thousands; our oxen will be 
strong to labour, and there will be no breaking in or going 
out,* or complaining in our streets. Happy is that people 
that is in such a case, yea, happy is that people whose God 
is the Lord. Be wise then, therefore, O ye Kings, be in- 
structed, ye judges of the earth; serve the Lord with fear, 
and rejoice with trembling. Kiss the Son, lest he be angry 
and ye perish from the way, when his wrath is kindled but 
a little. 

But if the institutions of religion are important, as the 
means of national prosperity, how much more important 
are they, when we consider the life of man as the embryo 
of immortality; and in what rapid succession the whole po- 
pulation of a nation is swept into eternity! Are kings and 
governments immortalized, by that beneficent administra- 
tion which consults the welfare of successive generations 
in time? What glory and honour shall be rendered to those, 
whose policy, including the highest good of their subjects, 
in time, exerts upon them, in another state of being, a benign 
influence which will be enjoyed forever? 

From the preceding account of the means of national 
prosperity, it appears, That there is no collision of interest^ 

"^ No destructive emigrations! 



Means of A^ational Pros/ieritij, 281 

or foundation for envy^ betnveen the several classes of men j 
whose exertions are required to promote the general nvelfare 
of a nation. 

They are all parts of one whole, and so mutually depen- 
dent on each other, that if one prospers, they all prosper, 
and if one suffers, they all suffer, and if not immediately, 
yet inevitably, in the course of events. There is no agri- 
cultural interest at war with the commercial or manufac- 
turjng interest; and no interest of science or religion, which 
does not include the prosperity of the entire community. 
The farmer, the manufacturer, the merchant, the faculty 
of colleges, the instructors of schools^ the physician, the 
statesman, the judge, the lawyer, and the divine, are con- 
stituent members of the great family, and indispensable to 
its highest prosperity. The constitution of man, and of the 
earth, demands this division of labour. All cannot be far- 
mers; for who, then, would purchase the surplus product 
of the earth? and without a demand, who would raise it?-— 
and with only the excitement to labour, of providing a sup- 
ply for his own family, who would escape from the imbe- 
cility of sloth, and the vices of idleness? Nor can all be 
manufacturers: for who then would provide the raw mate- 
rial, or sustain the labourer? Nor can all be devoted to 
science, or the learned professions. Nor can all be rich, 
so long as God has moral purposes to answer, by having 
the poor always with us, or gives to men, in various de- 
grees, intellect, bodily vigor, health, and providential fa- 
vour. Indeed, wealth is a relative term; expressing a more 
than ordinary amount of property, and can no more become 
universal, than the whole earth can become one mountain 
or one valley. 

As to the relative honour, attached to the different em- 
ployments of men, in a state of civil equality, like our own, 
it can be only that which results from the relative utility of 
different employments, or the voluntary respect paid to 
talents and office for the public good. He then is an hon- 
ourable man, who serves his generation faithfully, in the 
employment to which, in the providence of God, he is call- 
ed; and he, who, from the elevation of wealth, or office, 
looks down with disdain on the labouring classes of society, 
is a man of a weak intellect, or of a bad heart. In this 
country, where our greatest and best men rise often from 
poverty, and usually from the labouring classes of society, 
that upstart nobility, which despises the leyel from which 

A a 2 ' 



2.82 Means of Jstational Frosfierity. 

it has just arisen, and to which, as the wheel rolls, it will 
soon return, is supremely ridiculous and pitiable. Whose 
l)Iood, in this land of freemen and industry, has not flowed 
through the heart of a farmer or an artizan? and who does 
not exult in his honourable and athletic ancestry? The 
man who is ashamed of it is a fool. 

On the other hand, he who is not contented with the 
useful and respectable station in society, assigned him in 
the providence of God, but fosters in his heart murmuring 
and envy, is riioved to discontent by the same pride which 
he censures in others, and if elevated to wealth, would 
exhibit, probably, the same contempt of poverty, and the 
same ridiculous vanity, which now so annoy, him in others. 
This spirit, which lusteth to envy, is pride, murmuring at 
the inequalities of condition, incident to civilized society, 
and the constitution of things, which God has ordained. It 
is as odious in itself, as hateful to God, and as mischievous 
in its effects upon society, as the same pride is when it is 
enabled to array itself in haughtiness, by means of wealth 
or official consequence. It is also the deceivableness of 
unrfghteousness, for multitudes indulge it, and never dream 
that, in all their philippics against pride, they are inspired 
by pride and moved by envy. It exists, unseen, often in the 
sanctified heart. It occasioned to the apostles some erf 
their earliest and greatest difficulties in the primitive 
churches. It exists still in the church of God for a lameri* 
tation, and will exist for a lamentation, it is feared, till the 
more ample measures of grace in the latter day shall teach 
Christians to be hi subjection to the father of spirits, and 
in whatsoever state they arc, therewith to be content. No 
instruction seems adequate to bring to the heart under it» 
influence a conviction of its own haughtiness — And no 
change in the constitution of society can take place to re- 
move the provocation. The death of firide^ by the reign of 
grace in the heart , is the only remedy. — The fault is in the 
heart J not in the constitution of society y or in the firo-videnc'c 
of God. All cannot be head, or eye, or earj in the humad 
body, and yet there is no cause for schism, or discontent, 
at the relations and employments which God has assigned 
to the diflerent members. In like manner God hath set 
the members of civil society, every one of them in the body> 
as it hath pleased him. If they were all one member, 
where were the body? But now are they many members, 
yet but one body. And the eye cannot i^ay to the hand, I 



Means of National Pro%p.erity. 28$ 

have no need of thee; nor again the head to the feet, I have 
no need of you; for God hath tempered the hody together 
by mutual dependencies and honours, that there should be 
no schism in the body, but that the members should have 
the same care one for another. 

The man, who, to answer the purpose of ambition or 
irreligion, avails himself of this pricle of the human heart, 
to alienate from each other the different classes of society, 
is more execrable in his deeds than the assassin or the 
incendiary. The one kills at once a single victim, th^ 
other afflicts the entire community, with a poison that 
perpetuates the exasperations and spasms of a living death. 
The one lays in ashes cities that can be rebuilt, the other 
kindles in society a fire, as if fed from beneath, wliich, like 
the burnings of the volcano, no storras nor floods can extin- 
guish, and which not unfrequently extends its ravages 
through many generations. Especially are the interests of 
society vitally assailed, when the pious are industriously 
alienated, and the ministry of reconciliation is made the 
object of suspicion and the but of scorn. I intend not that 
religion, by such hostility, can be destroyed; but that its 
salutary influence upon society must be limited, in propor- 
tion as scorn and distrust are extended, is self evident. 
Now I beseech you, brethren, mark them which cause 
divisions and offences, and avoid them, for they that are 
such serve not our Lord Jesus Christ, but their own belly, 
and, by good words and fair speeches, deceive the hearts of 
the simple. Remember the words of our Lord Jesus, how 
he said, every kingdom divided against itself is brought to 
desolation, and every city or house divided against itself 
shall not stand. Such is the unhappy selfishness of man, 
and the jealousy of his pride, that it is easy to alienate, and 
difficult to unite, the members of the great family. Men 
without talents or honesty can engender strife, and conduct 
a nation to destruction. But talents and wisdom, and inte- 
grity and virtue, are required to elevate a nation to pros- 
perity and glory. 

It is equally manifest from what has been said, that there 
is no collision of interest^ or cause for jealousy^ between the 
different sections of this nation. 

The highest aggregate of national prosperity will carry 
to every section of the union, and to every dwelling, the 
highest amount of relative wealth and enjoyment. What- 
ever temporary advantages may be reaped by a local 



284? Means of J\rational Prosperity, 

policy, adverse to the general prosperity, will end in ulti- 
mate injury to the favoured portion. 

Indeed, so terrific are the consequences of national dis« 
memberment, and so glorious are the prospects before us 
of national energy, well directed, that if a compromise of 
local interests were demanded, it would be compensated a 
thousand fold, by our exemption from the wars of rival 
neighbours, and the mischiefs, in that case, of European 
intrigues and armies, and by a stream of blessings more 
deep, and broad, and inexhaustible, than overflowed through 
a nation. No nation ever possessed in a higher degree 
the means of national prosperity.— An ample territory, 
fertility of soil, variety of climate and product, a sea coast 
of three thousand miles, facilitating foreign commerce, 
fisheries, and the coasting trade, and though separated by 
mountains, this physical cause, adverse to our unity, is 
overcome by our rivers, canals, coasting trade, and steam 
navigation, which create unparalleled facilities of national 
intercourse. This vast territory is to be tilled by freemen, 
a race as hardy, intelligent, and enterprising, as ever turn- 
ed the soil. The surplus of our raw materials falls into 
the hands of artizans, not surpassed in ingenuity, and soon 
not to be surpassed in skill, by any on the globe; and the 
surplus of their labour, and of the farm, beyond what they 
consume, falls into the hands of merchants, whose enter- 
prise knows no limits. In the mean time, we have no 
rubbish of feudal ages to remove, or remaining, to em- 
barrass. We c<ommenced our national existence in a state 
of civilization. The whole land was before us, to frame 
our laws and fashion our institutions, as experience and an 
enlightened intellect should dictate. Our colleges, acade- 
mies, and schools, have given us able men in the profes- 
sions, and have diffused intelligence to an unparalleled 
extent among the common people, and their power may 
be indefinitely augmented, to meet the exigencies of the 
nation. 

The bible and the institutions of Christianity are with us, 
and the heart and hand of every denomination of Christians 
is now engaged, to give to every family, and to the nation, 
the entire benefit of their moral influence. Thus circum- 
stanced, the government of a nation, which is so soon to 
number its hundreds of millions of population, ought not to 
be embarrassed in its policy, by the bickerings of local 
covetousness, but ought to be left, with the. illumination of 
concentrated wisdom, to lay broad and deep the foundations 



Means of Kational Prosficrity, SSS* 

of our future glory. Indeed, no compromise of local tem- 
porary interest is demanded by that policy which will 
conduct to national prosperity. In every part of the nation, 
manufactures may rise, and busy commerce, inland and 
foreign, distribute our surplus, augment our capital, give 
energy to industry, improvement to roads, patronage to arts 
and sciences, vigour to schools, and univeisality to the in- 
stitutions of religion; reconciling civil liberty with efficient 
government; extended population with concentrated action; 
and unparalleled wealth, with national sobriety and morali- 
ty. Give, then, to the government of our nation the confi- 
dence which they ought to possess, and demand of them 
only that they put in requisition the physical, intellec- 
tual, and moral resources of the nation, and if they are 
faithful to their trust, they will make us the greatest, 
wealthiest, happiest nation, that ever dwelt upon the earth. 

It is also manifest, from the preceding discourse, that 
while no voluntary economy in the family can remedy the 
balance of trade against us, created by the consumption of 
foreign manufactures, or shield the manufacturer from a. 
ruinous competition, it is not in the power of government 
to render a nation of imfirovident families great and happy. 
Those habits of dissipation, which have squandered the 
wealth and paralized the energy of other nations, are com- 
ing in upon us. This encroachment, nothing but individu- 
al and family discretion can effectually prevent. To ac- 
complish this, it is indispensable that children be early ac- 
custonied to profitable industry. That nation is becoming 
eff*eminate, in proportion as the number of families are in- 
creased, who merely consume, but add nothing to the stock 
of labour. These families are also the pioneers of dissipa- 
tion, letting in upon us the fickle flood of fashion, creating 
envy, and tempting to ruinous expense. And these same 
are the aristocracy of supercilious indolence, who would 
throw into relative disgrace the labouring classes of the 
community, a nation's wealth, and strength, and virtue. 

Upon us, then, the members of this society, as a part of 
the nation, devolves the duty, of setting our own houses in 
order, of checking, by our example, the innovation of ex- 
pensive and gaudy fashions, of maintaining simplicity of 
living, and resisting that expensive luxury, which is creep- 
ing in under the cover of festivity, and the hospitalities of 
friendship, and of rearing up our families in habits of use- 
ful industry. To us it appertains so to conduct the educa- 
tion of our children, that what is bestowed upon the exte- 



286 Means of National Prosfierity* 

rior shall be subtracted^ neither from the head nor the 
heart, nor from bodily vigour. Polish is beautiful, but it 
should be laid on solid materials. The happiness of do- 
mestic life depends on substantial realities of care and la- 
bour. The young man who is too indolent or too proud for 
useful activity, is in the road to ruin, and the daughter of 
folly, of the same sentiments and habits, is fit only to be the 
companion of his sorrows and disgrace. Far from our 
dwellings be the calamities of an effeminate education; but 
let piety rather, and cultivated intellect, and habits of in- 
dustry and economy prevail in them, and each succeeding 
anniversary will find them in the grateful enjoyment of 
that blessing of the Lord that maketh rich and addeth no 
sorrow. 



Extracts from a Circular Letter of a Committee afifiointed 
bi., a Meeting of the Citizens of the City and County of 
Philadelfihiay dated October 13, 1819. 

That distress and embarrassment pervade our country, 
to an extent probably never before felt here, except during 
the period that elapsed between the close of the revolu- 
tionary war and the adoption of the federal constitution, 
cannot be denied. A large proportion of our manufacturing 
establishments are suspended, and nine-tenths of those 
that are in operation have greatly curtailed their business. 
Of tlie proprietors many are ruined, and those whom 
strength of capital or other advantages, have enabled to 
maintain the struggle, are encouraged to persevere, mere- 
ly by the hope of a favourable change in the policv of our 
government. The situation of a large portion of the work- 
men is truly deplorable. Numbers of them, with their fa- 
milies, are destitute of the means of subsistence; hundreds 
are working at laborious employments, for little more than 
their bare food; and many estimable men and woinen, with 
large families, are absolutely driven to beggary. Nume- 
rous emigrants, who, under many inconveniences, have 
come to this country, in the flattering expectation of hav- 
ing full employment in their various arts and trades, and 
enjoying the benefits of a free government, have been pla- 
ced in the melancholy alternative of begging or starving. 
No small portion of those who had the means> have return- 
ed to Europe, with disappointed hopes and broken spirits, 



Means of JSfational Prosfierity. 587 

Real estate has every where fallen one-third, one-half, and 
in many cases three fifths; our bread-stuffs are greatiy re- 
duced in price, chiefly in consequence of their exclusion 
from the markets of that country which has maintained 
with us as lucrative a commerce as ever existed; a coun- 
try which purchases our cotton at twenty, twenty -five, or 
thirty cents per pound, and returns it to us, improved by 
machiDcry, at two, three, and four dollars per pound. Our 
towns and cities, instead of being peopled with an active 
population, whose productive industry would add to the 
pow vT and resources of their country, and promote their 
own happiness, are crowded with hucksters and retailers of 
the products of the industry of foreign nations, who are so 
numerous that the business affords them but a sorry sub- 
sistence. Of the merchants, who, a few years since, carried 
on an extensive commerce, some for twenty, thirty, and 
forty years, one-third, or one-half, are ruined. Owr ships 
are a burden to their owners, whose utmost sagacity can 
hardly find out profitable employment for one-fourih of 
them; they are rotting at our wharves, and are often sold 
for thirty, twenty-five, and even twenty per cent, of their 
cost. The farmers have not escaped the general distre^ss; 
as thousands of farms throughout the United States, are 
under execution; and, whenever brought to auction, are 
sacrificed, on an average, at half what they would have 
sold for two or three years since. 

In this appalling state of affairs, indifference would be 
criminal. The sacred duty Q^ery citizen owes to his coun- 
try, imperiously requires exertion. It behoves every man 
who has acquired property by honest industry, and finds 
it, without any fault of his own, melting in his hands, like 
snow before the sun; who has goods which he cannot sell; 
real estate which he cannot mortgage or dispose of, to re- 
lieve himself; debts due, which his honest debtors are un- 
able to pay, in consequence of the general stagnation; who 
has industry or talents of any kind, on which he relies for a 
decent support, but is unable to find employment for them; 
in a word, it behoves every man, who has a spark of public 
spirit, or any atake in the general welfare, to probe the 
festering ulcer of public distress to the bottom, in order to 
ascertain its real source, and whether a cure is hopeless; 
if not, to discover what is the remedy, and how, when, and 
by whom, it ought to be applied. 

We are persuaded that it may be laid down as a gene- 



288 Means of Jsfational Prosfierity. 

ral rule, which will scarcely admit an exception, that a' 
nation like ours, whose citizens are ingenious, enterpris- 
ing, and industrious; which possesses almost every variety 
of soil and climate, as well as of vegetable, animal, and mi- 
neral productions; enjoys a free and unexpensive govern- 
ment; is unburdened by tithes or grinding taxes; and 
whose agriculturists generally own the fee simple of the 
lands they cultivate — cannot, unless by war, famine, or 
pestilence, suffer such genera! distress as we experience, 
without some enormous and radical error in its political 
economy. 

Our vital error, to sum the whole in a few words, is, 
wasting our wealth and resources to foster and promote 
the aG:riculture, arts, manufactures, trade, and commerce 
of other nations, and neglecting to protect those of our 
own country. Decay, decrepitude and ruin, have uniformly 
attended such a system, m all past ages; and, by the eter- 
nal laws of the moral world, cannot fail to produce the 
same effect to the end of time. We have added our expe- 
rience to that of Spain and Portugal, to prove this theory, 
and the deplorable stale to which nations are reduced by a 
neglect to protect domestic industry. 

Many of our citizens ascribe the whole of our distress to 
the misconduct of the banks, which, they assert, first by 
extravagant emissions, and then by pressing on their debt- 
ors, ha \re p^'oduced the present stagnation. 

We do not pretend to defend the banks. There are, in 
various parts of the country, three or four times more than 
are necessary. Many of them have been very ill managed, 
and have done much mischief But when the great mass 
of distress existing in this country, is charged to the ac- 
count of those institutions, the effect is mistaken for the 
cause. The support and stay of banks is specie; and, be- 
ing drained of this in immense quantities, to pay for fo- 
reign luxuries, they must, in their own defence, curtail 
their business, press on their debtors, and produce stagna- 
tion and distress. As well may we expect a human being 
to retain his elasticity and energy, when, from a wide ori- 
fice in one of his arteries, his life's blood is gushing out, as 
that banks can accommodate the public, and by loans pro- 
mote trade and commerce, when they are drained of what 
may be styled their life's blood, and themselves brought to 
the verge of ruin. 

The first step requisite towards a cure, in every case of 



Means of Jstatianal Prosfierity. 289 

malady physical or political, is to ascertain the nature and 
extent of the evil. The best mode to accomplish this object, 
in the present instance, is to appoint suitable committees to 
investigate the real state of the agriculture, manufactures, 
trade and commerce of the United States;. how far they 
have advanced, maintained their ground, or declined; and 
if they have declined, to what cause it is owing. 

We therefore earnestly request yoji will, as early as may 
be, convene the citizens of your district, in order to appoint 
committees for the above purpose, and to take their sense 
on the all important question, whether we are to continue 
to lavish the treasures of our country on the manufactures 
of Europe and Hindostan, while our own are consigned to 
ruin, and while the nation is, in consequence, impoverish- 
ed, to procure articles abroad which we either do not want, 
or can produce ourselves. 

When this nation was in its colonial state, it complained 
most grievously of the oppression it suffered by the re- 
strictions and prohibitions of the mother country, whereby 
its industry was restrained and paralized, and its resources 
drained away. This was one of the most serious evils of 
its dependent situation. And it cannot be denied, that our 
present system, which equally paralizes our industry and 
impoverishes our country, entails on us some of the worst 
consequences of the colonial state. 

The party distinctions that have heretofore so long divi- 
ded our citizens, distracted our country, and, during the war, 
endangered its safety, have, in a great degree subsided. 
We hope and trust, that henceforward they will assume a 
new form; and that the question will be between those who, 
by destroying the productive industry of the country, are 
disposed virtually to colonize us; an^ii those who are for se- 
curing us a real independence. Unless our citizens be 
wanting to themselves, the friends of the colonial policy 
will, in future look in vain, on the day of election, for the 
support of an enlightened body of electors, and have leave 
to retire to the shades of private life. 

The syren song of " buying cheap, goods abroad^*^ has 
been re-echoed in our ears with unceasing industry. We 
have fatally been seduced by it, and led to the brink of de- 
struction. What are the facts of the case? 

A few short years have elapsed, since the productions of 
our soil and our manufactures commanded high prices. Cot- 
ton was thirty cents per pound; wheat, two dollars and a half, 

Bb 



290 Means of JS/'ationat Prosfierity. 

and three dollars per bushel; flour, eleven and twelve dol- 
lars per barrel; prime beef eighteen cents per pound; oak 
wood seven dollars per cord; merino wool four dollars 
per pound; superfine cloth, ten or twelve dollars per yard; 
and all other articles in the same proportion. What was the 
result? Was the nation miserable or wretched, in conse- 
quence of paying these high prices? No: far from it. We 
enjoyed as high a degree of prosperity as any nation ever did. 
To this strong and important fact, we hope you will pay due 
attention. All our labouring people weie fully employed. 
Our capitalists derived liberal profits from their wealth. 
Spleudid manufacturing establishments arose, as it were 
by magic. The farmers and planters had high prices and 
i*eady markets for their produce. And, for a large portion 
of the time, commerce likewise throve, under those high 
prices. In a word, the face of the country exhibited an ap- 
pearance cheering to our friends, and appalling to our ene- 
mies. 

But now we have fallen on those " cheap, times'^* which 
have been so much wished for, and so highly extolled by 
those political economists, whose counsels have unfortu- 
nately prevailed over the wise and profound system of 
Alexander Hamilton and Thomas Jefferson.* And what is 
the result? Has " cheapness*' shed those blessings on the 
nation, that we were led to expect? Can those who have 
enabled us to buy cheap, congratulate themselves on the 
result of their plausible but destructive system of poli- 
tical economy? Can we find safety or happiness, in taking 
them for guides in our future career? No: it is fatally the 
reverse. Our country exhibits a scene which excites our 
friends to mo\irning, and affords matter of exultation and 
triumph to our enemies. 

Wheat is one dollar and ten cents per bushel; flour is 
six dollars per barrel; couon eighteen cents, and beef six 
to ten cents per pound; oak wood, five dollars per cord; 
merino wool, one dollar per pound; superfine cloth six or 
eight dollars per yard. And has this state of things produ- 
ced the millenium with which its patrons flattered us? Is 
the house owner, whose rents have fallen from two thou- 
sand dollars per annum to twelve hundred or a thousand, 

* "We must place the manufacturer beside the agriculturist." 

Jtrff'erson* 
This single line embraces an abstract of political economy, of 
incalculable importance. 



Means of JVational Prosfierity. 291 

compensated by the saving of four dollars per barrel in 
eight or ten barrels of flour, and three dollars per yard in 
two or three suits of clothes, in the year? Where, we ask^ 
and earnestly request a reply from those citizens who, with 
Adam Smith for their guide, advocate the purchase of 
goods abroad, where they can be had cheap, is the advan- 
tage to the workman whose labour was worth six, eight, 
or ten dollars per week, and who is totally bereft of em*- 
ployment, that the price of a barrel of flour is only six 
dollars, whereas he does not now earn six dollars per 
month, and has not wherewith to purchase, if it were re- 
duced to three? Is it any c9nsolation to the farmer, who 
expended a fortune on merino sheep, which the prostration 
of our woollen manufactures has condemned to the but- 
cher's knife, and who sold his wool for four dollars per 
pound, of which the price is now one dollar, that he can 
buy broadcloth at six or eight dollars per yard, instead of 
ten or twelve? The loss on the fleeces of a dozen sheep 
outweighs all the advantages he derives from the destruc- 
tion of the capital, the prospects, and the happiness of his 
manufacturing fellow-citizens. What are the mighty bene- 
fits derived by the cotton planter, who saves from fifty to a 
hundred dollars per annum in his clothing and that of his 
slaves, when, in consequence of the want of a domestic 
market, he loses ten cents per pound, or a thousand dol- 
lars in a year, on his crop of cotton of ten thousand pounds? 
He saves by cents, and loses by dollars. 

While all the energies of the human mind are called in- 
to activity, on the question who shall be president, gover- 
nor, member ot congress, representative m the state legis- 
lature, sheriff*, and even county commissioner, so compara- 
tively uninteresting to the major part of the community, it 
is lamentable to see what torpor and indifference prevail 
on this vital topic, which decides the important question, 
whether Washington, Greene, Montgomery, Warren, Mer- 
cer, Laurens, Clinton, Wayne, Stark, Pulaski, Fayette 
fought and bled — whether Franklin, Adams, Hancock, Jef- 
ferson, Otis, Randolph, Jay, Lee, Livingston, and Henry, 
pleaded — in vain. We have no hesitation in saying, this 
is the real state of the question: for the man whose capital 
is destroyed, whose talents are rendered useless, whose 
means of supporting himself are torn up by the roots by a 
false policy, looks in vain for the boasted blessings of the 
evolution. He compares his situation with that of the ma 



292 Means of J^ational Prosfierity, 

nufacturers of England, France, Austria, and Russia, and 
envies the fostering care bestowed on them by their mo- 
narch s, which forms such a contrast with the destruction 
to which he is consigned by his fellow-citizens. So far 
as property is concerned, there is little difference between 
the citizen of the United States, who is ruined for want of 
protection, as so many of our manufacturers have been, 
and the cringing slave, whom the despotism of the dey of 
Algiers or the emperor ot Morocco plunders of his sub- 
stance. " Disguise it as we will,*' it is the same destruc- 
tion, that robs existence of its charms, although differently 
administered: for, without property to render life comfort- 
able, life itself is of little value. In one respect, the case of 
the American citizen appears worse than that of the Alge- 
rine slave. The former had every right to calculate on an 
exemption from the ruin that has blasted his prospects of 
happiness; whereas, the latter inherited from his ancestors 
the cruel destiny of holding not merely his property, but 
his life itself, on the precarious tenure of the mercy of a 
barbarous tyrant. 

On the subject of " taxing the many for the benefit of 
the few," prolix essays and pamphlets without number 
have been written, and frothy speeches delivered. This 
has been adduced as an unanswerable argument against 
extending any protection to manufactures, further than 
what is afforded by the duties laid for the purpose of rais- 
ing a revenue. It is a fertile subject, and would require 
much detail: but the limits of a letter are already trans- 
cended, and we must be brief. We will state a few cases, 
in which one part of the communUy is heavily taxed for 
the benefit of another, without murmur. The beneficial 
coasting trade has been secured to our merchants, by a to- 
tal prohibition of foreign rivalship, under penalty of confis- 
cation; whereas there is no manufactured article whatever 
prohibited. The protection of commerce has pi^obably cost 
the nation one hundred millions of dollars, for foreign em- 
bassies,* fleets, and a wasting war, which commerce alone 

* Some idea may be formed of the enormous expenses incurred 
for the protection of commerce, from a statement of two facts: — 
The expense of foreig-n intercourse, that is, for anibassadors, char- 
ges des affaires, consuls, agents, bearers of despatches, &c. &c. 
&c. for twenty-four years, havu been 10,872,494 dollars, or above 
450,000 dollars per annum, (Seybert, 713.); and for the IBarbary 
powers, in twenty years, 2,457,278 dollars, or above 120,000 dol- 



Means of Mitional Prosfierity. 293 

has rendered necessary. Of all this immense sum, not one 
cent has been levied for the benefit of manufactures. Fo- 
reign spirits are subject to duties from eighty-six to one 
hundred and twenty per cent., and cheese to about ninety 
per cent., for the protection of agriculture: while woollen 
and cotton goods pay only twenty-se>(en and a half per 
cent., (except the latter, when below twenty-five cents per 
yard) manufactures of brass, steel, tin, lead, glass, earthen- 
ware, pottery, sail-cloth, &c. pay only twenty-two; and li- 
nens only sixteen and a half. We do not censure, on the 
contrary we approve, the protection those duties afford to 
agriculture. We only deplore the lamentable difference 
between one hundred and twenty per cent, on gin, to pro- 
tect domestic peach brandy and whiskey, and twenty-seven 
and a half per cent, on cottons and woollens! 

Should you pursue the plan herein recommended, we 
respectfully advise that you communicate the result of your 
inquiries, in the form of a memorial, to the members of 
your state legislature, and to your members of congress. 
Should the former body be impressed with an idea of the 
correctness of the views we have taken of this mighty sub- 
ject, they will doubtless use their constitutional right to 
request your representatives, and instruct your senators, 
in Congress, to exert their influence to have the tariff so 
far modified, that it shall be no longer possible to say, as, 
alas! we can now say with perfect truth, that the manufac- 
turers in the most arbitrary governments in Europe are fos- 
tered, cherished, and protected from foreign competition; 
while, under this free government, ours are exposed, by 
their fellow-citizens in Congress, to the competition of the 
whole world! The appointment of a committee, to corres- 
pond with the different towns in your state, would be a 
highly beneficial measure; and is most earnestly recom- 
mended to your attention. 

It is to be presumed, that our representatives in congress 
are disposed to do their duty, and only require to be well 
informed on the subject, to induce them to pursue a cor- 

lars per annum. (Ibid.) Thus, in these two items, there is 3, posi- 
tive disbursement, for the protection of commerce, of above half a 
million of dollars annually: whereas, the government has never 
paid one dollar, as bounty or premium, to foster, protect, or pro- 
mote the productive industry employed in manufactures; and has 
never laid a dollar of duty, beyond what was called for by the exi- 
gencies of the treasury. 

Bb2 



294 Means of National ProBjierity, 

rect course. We therefore respectfully suggest to you, to 
take into serious consideration, the propriety of an applica- 
tion to congress, from the manufacturers of the United 
States, to be heard by counsel, at their bar. The most 
salutary consequences have resulted from this procedure 
in Great Britain; and it could liot fail to produce conse- 
quences equally salutary here; as it must elicit such a 
mass of information as would destroy the deleterious pre- 
judices, whose operation our country has so much reason 
to deplore. 

There is one point to which we invite your serious atten- 
tion, as of paramount importance. Notwithstanding the 
ruin that has overtaken so large a portion of our manufac- 
tures and manufacturers, there are some citizens, with im- 
mense capitals, engaged in the cotton branch particularly, 
who deprecate the idea of any further protection, and have 
impressed on the minds of the constituted authorities, that 
the present duties are amply adequate. Thrs phenomenon 
in trade — a renunciation of further aid from government, 
of which the world has never hither to hada parallel case — 
must arise from such a pure spirit of patriotism, as would 
reflect honour on Greece and Rome, in the most brilliant 
period of their history, or from some motive of a very op- 
posite character. It has been successfully used by the 
friends of the existing system, as an irresistible argument 
against the host of petitioners, who have besought addition- 
al protection. As it has been thus employed, it becomes a 
duty to investigate it thoroughly, and ascertain, as far as 
may be practicable, the source from whence it springs. It 
is asserted, that the proprietors of those establishments 
prefer, as the least of two evils, encountering the desultory 
competition of foreigners, whose goods are often of inferior 
quality, to the steady and unceasing rivalship of a vast 
number of their fellow-citizens, who, in the event of a full 
protection to manufactures, would enter the lists, and di- 
vide the market with them. On this delicate point we 
cannot pretend to decide: we merely present it to view, for 
public consideration. 



INDEX. 



Address to the president of the 
United States, 78 

Address of foreign mechanics 
and manufacturers, 144 

Agriculture, protection of, 240, 
241 

America, future policy of, 233, 
233 

American manufacturers, con- 
trast between their situation 
and that of the British, 221 

American staples, reduction of 
21 

American manufacturers, diffi- 
culties of, 143 

Analogy between Portugal and 
the United States, 95 

Austin, Benjamin, letter of, 134 

B 

Bacon, lord, infatuation of, 15 

Bounties offered by Frederick 
II., 52, 55 

Bounties on manufactures, ef- 
fects of, 127, 129 

British tariff, extracts from, 36 

British policy, wisdom of, 39, 
40 

British mercantile policy, ruin- 
ous effects of, 76, 77, 156 

British manufacturers, advanta- 
ges of, 146 

Brougham's opinion on Ameri- 
can manufactures, 152 

Buy where you can get goods 
the cheapest, folly of the max- 
im, 18, 19,22 



Cambric, great advance in the 
price of, 75 

Chatham, lord, hostile to Ame- 
rican manufactures, 185 

Cheese, prices of, 159 

Circular letter from a Philadel- 
phia committee, 286 

Commerce, fully protected, 160 
161, 162, 163 

Commerce, protection of, 242 

Commerce and manufactures, 
report of the committee on, 
138 

Commerce, prostrate state of, 
156, 157 

Congress, remonstrances to, 94. 

Contrast between Russia and 
the United States, 45, 46, 47 

Contrast between Great Britain 
and the United States, 41 

Contrast between Portugal and 
United States, 95 

Contrast between the situation 
of the agriculturist, the manu- 
facturer, and merchant, 166 

Contrast between Prussia and 
United States, 52 

Cotton manufacture, extent of 
the, in Great Britain, 39 

Cotton manufacture, immense 
gain by, 39 

Cotton mill, advantages of, 108, 
109 

Cotton manufacture in Provi- 
dence, 49 



29$ 



INDEX. 



Cotton manufacture in United 
States, 139 

Cotton manufacture, persons 
employed in, 139, 168, 169 

Cotton culture, 173 

Cotton manufacture, immense 
advantages of, 173, extent of, 
176 

Cotton imported into Great Bri- 
tain amount of, 175 

Cotton exported for four years, 
203 

Cotton, depression in the price 
of, 203, 212 

Cotton, East India, imports of 
into Great Britain, 206, 207 

Cotton, East India, prices of, 
208 

Cotton exported from the East 
Indies, 206 

Cotton, East India and United 
States, comparison between 
the prices of, 209 

Cotton, South American, import 
and prices of- 219 

Cotton, United States, exporta- 
tion of, 211, 212 

Cotton, ruinous consequences of 
the depression of, 212, 213, 
214 

Cotton, importation of into G. 
Britain, 215 

Cotton, circular letters respect- 
ing, 217 

Cotton manufacture, advanta- 
ges of, 221, 222 

Courteen establishes woollen 
manufactures in Portugal, 89 

Country labour, Adam Smith's 
absurd idea respecting, 27, 28 

Crusades, account of, 194 



Debt of Great Britain, 40 
Demoralization of manufactu- 
rers, disproved, 58, 154 
Disadvantages of trade with Eu- 
rope, 114, 115 



Domestic market preferable ta 

foreign, 111 
Drawbacks, S3^stem of, 131, 132 
Duties ad valorem, 238 

E 

Elizabeth abolishes the remains 
of the feudal system, 195 

Emigration promoted by manu- 
factures, 109, 110 

England, paupers of, 40 

European policy, 149 

Exports of Prussia, 53, 53 ' 

Extortions of planters and mer- 
chants, 70 

Extortions charged against ma- 
nufacturerSc, 58, 180 

Exports, United States, domes- 
tic, 168 

Exports, average of, 169 

Exports from United States for 
four years, 203 

Exports of United States, 247 

F 

Feudal system exists in Germa- 
ny, Hungary, and Russia, 196, 
197 

Feudal system abolished in Eng- 
land, 195 

Flour exported for four years, 
203 

Foreign trade, how it enriches a 
nation, 31 

France and Spain, supposed 
trade between, 82, 83, 84 

Frederick II, policy of, 52, 53, 
54 

French wars, effects of, 188 

French revolution, causes of, 
193 

French tariff, extract from, 242 



Gold drained from Portugal, 91 
Goods prohibited in Russia, 45 



INDEX. 



2»7 



GooBe with the golden eggs, 156 
Crrand jurj of Newcastle coun- 
ty, presentment of, 98 

H 

Hamilton on manufactures, 101 

Hamilton, Alexander, luminous 
maxim of, 38 

Hamilton, opinion of respecting 
manufactures, 158 

Hamilton, Alexander, tribute to, 
182 

Henry IV. of England dying in- 
junction of, 193 



Importations of the U. States, 
237 

Imports of the United States, ex- 
travagant amount of, 231 

Industry, decay of, 256 

Inspection of manufactured ar- 
ticles, 132 

Inventions, encouragement of, 
132 

J 

Jefferson, Thomas, letter from, 
135 

L 

Leather manufactures of Great 

Brltaiu, extent of, 3Q 

Literary institutions, advanta- 
ges of, 276 

Linen manufacture of Great 
Britain, extent of, 39 

Lyman, general Phineas, insidi- 
ous views of, 191 

M 



Manufacturing establishments 
in the United States, 117 

Manufactures, salutary effects 
of, 120, 121, 122, 145 

Manufactures of the U. States 
extent of, 179 

Manufactures increase the ge- 
neral stock of useful labour, 
113 

Manufactures, progress of in 
Europe, 195 

Manufactures, objections to, 5S 

Manufactures erroneously sup- 
7)osed to interfere with com- 
merce, 63 

Manufactures encouraged by 
Frederick II., 52 

Manufactures, incipient, disad- 
vantages of, 116 

Manufacturing labour, produc- 
tiveness of, 104 

Maxims of political economy, 
22 

Methuen treaty, consequences 
of, 90, 91 

Monopoly of domestic market, 
1 i6 

Montesquieu, error of, 15 

N 

National prosperity, 'means of, 

261 
Naval department, expenses of, 

246 

Navigation of the United States, 
164 

Navy of the United States, cost 
of, 164 

Neglect of manufactures, ruin- 
ous effects of, 146 

O 



Machinery of Great Britain, 1 98 
Machinery, advantages of, 106, 

107 
Manufactures, protection of, es- 
sential to national prosperity, 
266 



Oneida memorial, 149 

P 

Pauperism in England, 60, 197 
People deficient in industry cori- 



298 



INDEX. 



tribute little to national 
wealth, 5 92 
Philadelphia, distresses of, 254 
Pittsburg^, calamitous situation 

of, 257 
Pittsburg memorial, 258 
Policy of the United States, dis- 
astrous, 230 
Political economy, definition of, 

21 
Political economy of Great Bri- 
tain, 32, 33 
Political economy, sound max- 
ims of, 152 
Population of Great Britain, 197 
Population of United States, 168 
Population and paupers, tables 

of, 60, 61, 62 
Portugal, case of, 87, 89 
Premiums, effects of, 130 
Premiums given by Frederick 

II, 54, 55 
Prohibitions of Edward IV., 34 
Prohibitions of Charles II., 35 
Prohibitions existing at present, 

35 
Protection prayed for, 155 
Protecting- duties, arguments in 
favour of, 125 



Raw materials, exemption of 
from duty, 131 

Report on the woollen manufac- 
ture, 148 

RestrictioDS on importation 27 

Restrictions, foreign, on com- 
merce, 101 

Revenue, loss of, 58, 71 

Revenue of Great Britain, 73 

Russia, policy of, 44 



Smith, Adam, maxims of, 16, 24, 
28 

Smith's, Adam, maxims, reject- 
ed by Great Britain, 153 

Smuggling, a plea against pro- 
tecting manufactures, 58, 73 

Smuggling, remarks on, 236, 
250 

Spectator, quotation from, 1 90 

Specie scarce with agricultural 
nations, 122, 186 

Struggles of Edward III. to es- 
tablish manufactures, 152 

Steuart, Sir James, opinion of 
153 

T 

Tables of population and pau- 
pers, 60, 61, 62 

Tariff, American, extracts from, 
74 

Taylor, John, political economy 
of, 37, 157 

Teas duties on, 74, t61 

Theories frequently deceptive, 
143 

Tobacco exported for four year*, 
203 

Tonnage of United States, 164 

Trade will regulate itself, absur- 
dity of the maxim, 80, 87; ru- 
inous effects of, 82 

U 

United States, calamitous state 

of, 21, 78, 93,96,200 
United States, wretched policy 

of, 41,50 
United States, situation of at the 

close of the war, 225 — present 

situation of, 226 



Sermon by rev. Mr. Beecher,261 
Silk stuffs manufactured in 

Prussia, 52 
Smith, Adam, oracle of political 

economy, 15 



Vacant lands, objections drawn 
from, 58, 65 

Votes against adequate protec- 
tion of cotton manufactures. 

• 68 



INDEX. 



299 



W 

Wages high, no objection to ma- 
nufactures, 64 

Western states, prostrate condi- 
tion of, 69, 96, 172 

Western states, advantages of, 
142 

West India trade, balance of 
154 

Wines, duties on, 74 



Woollen manufactures in Por- 
tugal, 87 

Woollen manufactures extent 
of, 178 

Woollen manufactures introdu- 
ced into England by Edward 
TIL, 34 

Woollen manufactures, regula- 
tions in favour of, 34 

Wright's, governor, motion, 157 



ERRATA. 

Page 140, line 13, for nine thousand, read ninety thou- 

sjind. 

Page 222, line 27, for 62, 428, 800, read 3% 428, 800. 

Page 245, line 5, for 90 per cent, read 85 per cent. 

Sundry other errors have escaped, which the reader is 
requested to excuse, and correct with the pen. 



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